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Laxman Pai, Opalesque Asia: Bitcoin ETFs are increasingly being held by hedge funds, mutual funds, and other institutional investors, easing concerns that the cryptocurrency asset would remain a fringe investment, said a survey.
According to the recent survey from asset manager Bitwise Asset Management, the number of institutional investors holding bitcoin ETFs rose 14% in the second quarter, to 1,110 from 965. The exchange-traded funds reached more big firms despite a 12% drop in bitcoin's price during the second quarter of 2024.
The report said that there was some healthy churn in these flows. In Q2, 112 investors who held bitcoin ETFs at the end of Q1 sold out of the asset, while 247 new firms made their first investment. All told, bitcoin ETFs added 135 new firms.
Critics love to point out that bitcoin ETFs are predominantly owned by retail investors, who hold ~79% of the AUM of bitcoin ETFs. They use this fact to suggest that institutional demand is anemic. That's simply untrue. Bitcoin ETFs are being adopted by institutions at the fastest rate of any ETF in history.
According to Matt Hougan, Chief Investment Officer, Bitwise: "All in all, I find the Q2 2024 batch of 13F filings highly encouraging. Institutions continued to buy bitcoin ETFs in Q2 despite falling prices. Hundreds of new institutional investors made their first purchase. And bitcoin ETFs are being adopted by institutions faster than any ETF in history."
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