Institutional Investors Now Control 20% US-Traded Bitcoin Spot ETF

Institutional investors now control 20% of US-traded Bitcoin Spot ETF (Photo; Doc. Reddit)

JAKARTA - Institutional investors are now reported to hold about 20% of the entire Exchange-Trad Funds (ETF) Bitcoin spot traded in the United States. This data is disclosed through a 13F form report, which shows a significant increase in institutional interest in Bitcoin. This reflects a large shift in the investment landscape which is increasingly dominated by big players.

Quoted from Crypto Slate, CryptoQuant CEO, Ki Young Ju, revealed that on October 18, 2024, more than 193,000 Bitcoins are owned by institutional investors through Bitcoin ETF in the US. At least 1,179 institutions have been listed as investing in the Bitcoin ETF product. Several big names involved include the Millennium Management which manages assets worth 70 billion US Dollars (Rp1.09 quadrillion), Jane Street with 438 billion US Dollars (Rp6.8 quadrillion), and investment giant Goldman Sachs with 2.93 trillion US Dollars (Rp45.7 quadrillion).

In terms of absolute numbers, BlackRock through iShares Bitcoin Trust ETF (IBIT) leads with more than 71,000 Bitcoins owned by institutions. Even so, institutional participation in IBIT only reached 18.38%, which is still below average. Meanwhile, Grayscale Bitcoin Trust (GBTC) recorded 44,707.89 Bitcoins owned by institutional investors, making them the second largest Bitcoin holder. ARK 21Shares (ARKB) has the highest institutional participation percentage of 32.8% of its entire shares owned by asset managers, which is equivalent to around 17,166 Bitcoins.

On the other hand, the ETF with the lowest institutional participation is the Grayscale Bitcoin Mini Trust, with only 1.52% of its shares owned by institutional investors, while CoinShares Valkyrie ETF (BRR) records the lowest number of Bitcoins, only 451.26 BTC purchased through the product.

A report from VanEck also highlighted an increase in correlations between Bitcoin's ETF fund and crypto prices in recent months, driven by increased institutional interest. On October 18, Bitcoin's US-traded ETF surpassed the US$21 billion (Rp327 trillion) in total fund flows, according to data from Farside Investors. VanEck added that a surge in institutional interest could account for an 11% increase in Bitcoin price in October, with Bitcoin hitting a peak of 67,478 US Dollars (Rp1.05 billion). Demand that continues to grow from institutions is expected to boost positive momentum for Bitcoin in the near future.