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The first quarter of 2024 will be a turning point in the adoption of Bitcoin ETFs by institutional investors. According to recent announcements, more than 1,500 investment companies now hold significant stakes in these innovative products.
Massive influx of institutional investors
According to data compiled by Fintel, companies managing Bitcoin ETFs worth more than $100 million had amassed approximately $10.6 billion in assets as of the end of March. Some of the most popular ETFs include Grayscale Bitcoin Trust (GBTC), BlackRock’s iShares Bitcoin Trust (IBIT), Fidelity Wise Origin Bitcoin Fund (FBTC), and ARK 21Shares Bitcoin ETF (ARKB).
Hedge fund giant Millennium Management came out on top with nearly $2 billion invested in various Bitcoin ETFs. This is closely followed by Susquehanna International Group, which has allocated $1.1 billion for these products.
Other large firms such as Bracebridge Capital (404 million), Boothbay Fund Management (303 million), and Morgan Stanley (269.9 million) have also placed large bets on Bitcoin ETFs. There is.
Although these allocations represent only a small portion of the total assets under management by these investment firms, they still represent a major paradigm shift.
Unprecedented new product record
As highlighted by Bitwise Chief Information Officer Matt Hogan, this level of institutional ownership is unusual for a newly launched ETF. For comparison, the hugely popular Gold ETF attracted only 95 professional investors during its first 13F filing in 2004, despite raising more than $1 billion in its first five days. There were only people.
Although retail investors still make up the majority, institutional investors already hold about 20% of Bitcoin ETF assets. According to Hogan, this is just the tip of the iceberg.
“The current allocation is just a down payment. Hightower Advisors may currently be allocated 68 million, which is just 0.05% of his assets. Following trends, this will increase over time. A 1% allocation means $1.2 billion for this single company. Multiply that by the increase in attendance and you can understand my enthusiasm.”.
Professional investors’ enthusiasm for Bitcoin ETFs marks an important milestone in the democratization and mainstream adoption of cryptocurrencies. As regulators gradually pave the way for more Bitcoin-backed investment products, we expect institutional inflows to intensify and BTC prices could rise to new heights. will be done.
Let’s hope that the first quarter of 2024 goes down in history as an inflection point in Bitcoin’s financial market dominance.
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Disclaimer
The views, ideas and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Please do your own research before making any investment decisions.
