Q2 Spot Bitcoin ETF Holdings Up 30% Goldman, Morgan Stanley Lead

Bitcoin ETF holders surged by 30% in Q2 despite a sharp decline in Bitcoin’s price. This rise comes on the backdrop of turbulent cryptocurrency waters in Q2.  Bitcoin price plummeted from a high of $72,000 to a low of $56,000. Despite this significant 12% drop, institutional investors have displayed resilience.

This trend highlights a shift in institutional strategy towards digital assets, underscoring a broader adoption pattern that defies short-term market volatility.

Taking to his X account (formerly Twitter), Bitwise’s Chief Investment Officer, Matt Hougan, highlighted the number of holders for U.S. spot Bitcoin ETFs increased from 1,479 in Q1 to 1,924 in Q2.

This 30% rise shows institutional investors’ appetite for Bitcoin ETFs has not only remained steadfast but has grown.  Hougan revealed that 66% of investors who acquired Bitcoin ETFs in Q1 either maintained or increased their holdings in Q2. Specifically, 44% of these investors boosted their positions, while 22% held steady.

Top Spot Bitcoin ETF Hodlers in Focus

Among the major players in the Bitcoin ETF space, Goldman Sachs and Morgan Stanley stand out.

Recent filings show that Goldman Sachs holds approximately $238.6 million in BlackRock’s iShares Bitcoin Trust (IBIT), making it one of the top holders. Morgan Stanley follows closely with a $187 million stake in the same fund.

This growing acceptance could lead to more market activity and increased liquidity in the crypto space, despite Bitcoin’s 12% price drop during Q2 2024.

Morgan Stanley’s recent recommendations of Bitcoin ETFs to select clients are expected to further drive this trend, potentially leading to increased adoption and higher assets under management (AUM) in the coming quarters.

The assets managed by Bitcoin ETFs have increased from $50 billion in Q1 to about $53.6 billion. This growth is mainly due to institutional investors, who made up 7% to 10% of the total AUM in the first quarter.

Glassnode’s data shows an increase in Bitcoin accumulation, similar to the trend seen in March that pushed Bitcoin to its previous all-time high of $73,000.

Hedge Funds Betting on Spot BTC ETF

According to a Bloomberg report, interestingly, 701 new funds reported holdings in spot-Bitcoin ETFs by the end of Q2, bringing the total number of holders close to 1,950.

The spot-Bitcoin ETFs that launched in January have far exceeded expectations, drawing in a total of $17 billion in net inflows this year. BlackRock’s IBIT alone has grown into a $20 billion giant.

In July, spot-Ether ETFs also received approval and have attracted $1.9 billion in new investments. This amount does not account for the $2.3 billion in outflows from the Grayscale Ethereum Trust (ETHE), which transitioned to an ETF format last month, according to data from Soso Value.