The Rising Influence of Institutional Investors in Bitcoin ETFs
Recent data shows that institutional investors currently account for around 20% of all US-traded spot Bitcoin (BTC) exchange-traded funds (ETFs). This trend highlights the growing interest from large financial entities in cryptocurrency investment.
According to Ki Young Ju, CEO and founder of CryptoQuant, the latest 13F Form filings indicate that institutions collectively hold more than 193,000 BTC via Bitcoin ETFs as of October 18.
Institutional Participation Overview
Around 1,179 institutions have invested in US-traded spot Bitcoin ETFs, including notable names such as:
- Millennium Management, managing $70 billion
- Jane Street, a $438 billion trading firm
- Goldman Sachs, with assets totaling $2.93 trillion
Leading Bitcoin ETFs in Institutional Holdings
iShares Bitcoin Trust ETF (IBIT)
Leading the pack, BlackRock’s iShares Bitcoin Trust ETF, known as IBIT, boasts the highest absolute number of Bitcoins held by institutions, exceeding 71,000 BTC. However, its institutional adoption rate sits at a modest 18.38%, which is below the average.
Grayscale Bitcoin Trust (GBTC)
In second place, Grayscale’s GBTC has 44,707.89 BTC in institutional holdings, with approximately 20.25% of its investors being institutions.
ARK 21Shares Bitcoin ETF (ARKB)
Notably, the ARK 21Shares Bitcoin ETF (ARKB) ranks highest in institutional participation at 32.8%, with asset managers owning around 17,166 BTC.
Lowest Institutional Engagement
On the other end, Grayscale’s Bitcoin Mini Trust has the least institutional engagement, with only 1.52% of shares held by institutions. In terms of absolute numbers, CoinShares and Valkyrie ETF (BRRR) reports just 451.26 BTC in institutional purchases.
Fidelity Wise Origin Bitcoin Trust (FBTC)
Lastly, Fidelity’s FBTC ranks third with 44,623.23 BTC, encompassing 24.14% of its shareholders in institutional capacity.
Correlation Between Bitcoin ETF Flows and Market Price
A recent report from VanEck emphasized a growing correlation between Bitcoin ETF flows and market prices in recent months, primarily attributed to increasing institutional adoption.
As of October 18, spot Bitcoin ETFs traded in the US crossed the $21 billion mark for year-to-date flows, demonstrating significant investment activity, according to Farside Investors.
VanEck attributes part of Bitcoin’s 11% price surge in October—reaching $67,478—to this surge in institutional interest, indicating a potential for continued upward price momentum as demand from institutional investors grows.
