Spot Bitcoin ETFs See Unprecedented Institutional Adoption, Set to Break Records

In a post on X on Aug. 21, Bitwise chief investment officer Matt Hougan said that Bitcoin ETFs are being adopted by institutional investors “faster than any other ETF in history.”

He noted that spot Bitcoin ETFs “are the fastest-growing ETFs of all-time,” having amassed $17.5 billion in net flows since launching in January. Hougan added that they were about to break ETF records:

“This is on pace to smash the previous ETF record, held by the Nasdaq-100 QQQs, which gathered $5 billion in their first year. It’s not even close.”

The Invesco QQQ is an ETF based on the Nasdaq-100 Index and one of the oldest, largest and most-traded funds on the market.

Bitcoin ETFs Surging, Spot Markets Lagging

Hougan said critics argue that only retail investors are buying Bitcoin ETFs, pointing to 13F filings that show institutions hold only 21% of current ETF assets under management.

However, he said that the BTC products lead in institutional adoption, both in terms of the number of such holders and AUM, compared to other fast-growing ETFs.

“Bitcoin ETFs are by far the leaders in terms of institutional adoption. That’s true whether you measure by number of institutions or AUM.”

1/ Bitcoin ETFs are being adopted by institutional investors faster than any other ETF in history. Don’t believe the “it’s just retail” story. The data prove otherwise.

A thread.

— Matt Hougan (@Matt_Hougan) August 21, 2024

The narrative can be bolstered when looking at hedge fund adoption of Bitcoin ETFs. Earlier this week, research analyst at investment firm River, Sam Baker, reported that 60%, or 15 out of 25, of the largest American hedge funds have Bitcoin ETF holdings.

“Not a single one sold over the second quarter, and most are still stacking,” he said.

The largest holder is Millennial Management which has 27,263 BTC, followed by Schonfeld Strategic Advisors with 6,734 BTC, according to River.

60% of the largest U.S. hedge funds hold Bitcoin ETFs

Not a single one sold over the second quarter, and most are still stacking

Here’s how institutional bitcoin adoption is still ramping up👇 pic.twitter.com/sOpzE5XKDj

— Sam Baker (@macromule) August 19, 2024

Spot BTC ETFs Still Inflowing

Spot Bitcoin ETFs in the United States posted a fifth consecutive day of inflows on Aug. 21 with $39.5 million, according to preliminary data from Farside Investors.

Grayscale Bitcoin Mini Trust (BTC) was the leader of the pack, with an inflow of $14.2 million while the Fidelity Wise Origin Bitcoin Fund (FBTC) was second with $10.7 million.

So far this month, 66% of trading days have seen positive inflows for spot Bitcoin ETFs despite asset prices declining 8.5% since the beginning of August.