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Not only retail investors, but also these institutions are buying spot bitcoin ETFs.

Release Time:2024-05-17

Since the advent of spot bitcoin ETF, it has been the focus of investors' attention. Initially, these innovative products based on cryptocurrency mainly attracted the favor of retail investors. But the latest data shows that institutional investors are now flocking to join this investment wave.

According to the media's analysis of public documents, as of the end of the first quarter of this year, about 1,000 investment companies have reported holding bitcoin ETFs in their 13F filing documents. This lineup is huge and diverse, covering powerful institutions such as hedge funds, pension funds and banks.

The most eye-catching buyers include established hedge fund giants, such as Millennium, Point72 and Elliott. But it is not limited to this. From the Wisconsin Investment Committee to the Bank of Montreal, institutional investors are everywhere.

Analysts believe that although the specific investment motives of these institutions cannot be confirmed at present, their enthusiasm for Bitcoin ETFs is a major signal in itself-it means that, for whatever reason, Wall Street has begun to take seriously the world's largest encrypted assets.

Stephen Hollette, CEO of FRNT, said:

The 13F document shows that the growth of Bitcoin ETFs cannot be attributed only to the purchases of retail investors in brokerage accounts. Obviously, portfolio managers, institutional investors and banks have at least begun to test the water to hold bitcoin.

According to the 13F document, BlackRock's iShares Bitcoin Trust Fund (IBIT) is held by about 420 companies and is the most popular bitcoin ETF product at present. Fidelity Bitcoin Fund (FBTC) followed closely, with more than 230 companies holding positions. Other emerging bitcoin ETF products just launched in January, only 3 to 5 institutional investors participated on average. This huge contrast clearly shows institutional investors' preference for mature bitcoin ETF products.

The investment logic of institutions in bitcoin ETFs is not single. For traditional wealth management institutions such as Legacy Wealth, Bitcoin is just a tool to diversify investment, and they will properly control its allocation ratio in total assets. But other companies, such as United Capital Management, hold these ETF products based on optimistic expectations about the long-term prospects of Bitcoin and its underlying technologies.

Looking ahead, the enthusiasm of institutions to invest in Bitcoin may continue to rise. An encrypted asset observer analyzed that:

This situation may continue to expand, because the investment allocation of new assets is usually carried out in stages. In addition, when the market picks up, investment interest will pick up again.

Risk warning and exemption clause

The market is risky and investment needs to be cautious. This paper does not constitute personal investment advice, nor does it take into account the special investment objectives, financial situation or needs of individual users. Users should consider whether any opinions, viewpoints or conclusions in this article are in line with their specific situation. Invest accordingly at your own risk.

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