The Number of Institutions Holding BTC ETFs Surpasses That of Gold ETFs

In recent weeks, an increasing number of institutions have disclosed their holdings of Bitcoin spot ETFs to the SEC. According to Bitwise, as of last week, 563 institutions had disclosed their holdings, collectively holding Bitcoin spot ETFs worth $3.5 billion. Bitwise predicts that the total number of holding institutions will exceed 700, with assets under management (AUM) surpassing $5 billion.

According to Blockworks, the current total AUM for U.S. Bitcoin spot ETFs is $58.3 billion. If institutional holdings account for only $5 billion, as Bitwise predicts, who is buying the remaining over $50 billion in assets?

In fact, this $50 billion gap includes the initial funding from issuers before the launch of the Bitcoin spot ETFs. Excluding this factor, institutions disclosed under the P13 filings still hold a relatively small share, with the majority of funds coming from smaller institutions and retail investors that do not meet the P13 disclosure thresholds.

The Current State of Bitcoin ETFs

Retail and smaller institutional investors dominate the Bitcoin spot ETF market, likely driven by Bitcoin’s significant price increase over the past six months, which has attracted many retail buyers.

Additionally, although large institutions hold a relatively small proportion of Bitcoin spot ETFs, their holdings have already surpassed those of other ETFs. In the article “Who Is Buying Bitcoin ETFs?” by Bitwise’s Chief Investment Officer, data comparing Bitcoin spot ETFs and gold ETFs shows that in terms of the number of institutional holders, Bitcoin spot ETFs have already surpassed gold ETFs at that time.

Overall, Bitcoin spot ETFs represent a favorable investment option for traditional financial institutions, especially in the current climate of international uncertainty and unclear timelines for Federal Reserve rate cuts. Traditional finance requires high-quality assets like Bitcoin, which offer a degree of risk resistance, to mitigate overall investment risk.

Many Professional Firms Own BTC ETFs

As of May 9, filings for 11 publicly traded spot Bitcoin ETFs have revealed significant holdings by many professional investors.

These include some well-known asset management firms such as:

• Hightower Advisors: According to Barron’s, this company is the second-largest RIA firm in the U.S., managing $122 billion in assets. They hold $68 million worth of Bitcoin ETFs.
• Bracebridge Capital: A Boston-based hedge fund managing funds for institutions like Yale University and Princeton University. They hold $434 million worth of Bitcoin ETFs.
• Cambridge Investment Research: A company with over 40 years of history, managing more than $170 billion in assets. They hold $40 million worth of Bitcoin ETFs.
• Sequoia Financial Advisors: Based in Towson, Maryland, with a market value of $17 billion. They hold $12 million worth of Bitcoin ETFs.
• Integrated Advisors: A Dallas-based company with over 12,000 clients, managing $4 billion in assets. They hold $11 million worth of Bitcoin ETFs.
• Brown Advisory: A San Francisco-based firm managing $96 billion in assets. They hold $4 million worth of Bitcoin ETFs.

As of last Thursday, a total of 563 professional investment firms reported holding $3.5 billion worth of Bitcoin ETFs. By the May 15 filing deadline, it is estimated that we may see over 700 professional firms with total assets under management nearing $5 billion.

This is undoubtedly significant. For any financial advisors, family offices, or institutions wondering if they are the only ones considering investing in Bitcoin, the answer is clear: you are not alone.