Institutional Investors Increasing Exposure to Bitcoin ETFs
As of December 31, institutional investors held a significant portion of the assets under management (AUM) of spot Bitcoin exchange-traded funds (ETFs), totaling $26.8 billion.
Growth in Institutional Holdings
- The percentage of Bitcoin ETF AUM held by institutions grew by 113% between the third and fourth quarters of 2024.
- AUM ratio held by institutions increased by 4.1% quarterly, reaching $78.8 billion by the end of the fourth quarter.
Increasing Investor Exposure
According to K33 Research head of research Vetle Lunde, the number of investors exposed to Bitcoin via ETFs reached 1,576 in the last quarter, showing a 37.4% quarterly leap and a 68.2% yearly increase.
IBIT Dominance
Lunde’s data also revealed a substantial growth in institutional interest in BlackRock’s IBIT, which grew over 4x in 2024.
- Institutions reported $16 billion in IBIT shares at the end of the fourth quarter, compared to less than $4 billion in the first quarter.
- Mubadala Investment Company reported nearly $437 million in Bitcoin exposure through IBIT, while the State of Wisconsin Investment Board increased its BTC investment via IBIT by 110%.
Expansion of Fidelity’s FBTC
Fidelity’s FBTC also experienced significant expansion, nearly 100% quarterly, with total AUM of institutional holdings around $5 billion.
Market Overview
BlackRock’s spot Bitcoin ETF leads with nearly $56.4 billion in AUM, while all other US-traded spot Bitcoin ETFs combined total $56.9 billion.
