Two-Thirds of Institutional Investors Plan to Hold or Buy Bitcoin in Q2

In January this year, a series of Bitcoin (BTC) spot exchange-traded funds (ETFs) were launched on U.S. stock exchanges. As reported in Bitcoin news a few months ago, this immediately opened the door for new capital flows from institutional investors.

New filings with the U.S. Securities and Exchange Commission (SEC) reveal that the vast majority of institutional investors either maintained or increased their Bitcoin holdings in the second quarter.

Professional investors are required to disclose their investments through so-called 13F filings with the SEC. These forms must be submitted quarterly and provide an overview of the securities held by financial institutions.

This obligation clarifies who is investing in Bitcoin ETFs. After the first quarter, a total of 1,479 institutional and ETF portfolios were counted. This does not mean that 1,479 different institutions invested in Bitcoin funds, as many institutions hold positions in different ETFs.

Additionally, 44% of institutional investors increased their Bitcoin ETF holdings between April and June, while 22% made no changes.

Only 21% of investors reduced their positions, and 13% completely exited, “a rather good result compared to other ETFs.”

Institutional Adoption of Bitcoin ETFs Continues

Hougan concluded that last quarter’s institutional adoption of Bitcoin ETFs continued the trend from the first quarter.

“This trend remains strong,”

Hougan said.

Compared to the stellar performance in the first quarter, Bitcoin’s price barely proved itself in the second quarter. Bitcoin fluctuated significantly between $60,000 and $70,000, causing many retail investors to exit the market.

Hougan noted that, on the other hand, institutional investors are diamond hands and do not panic sell when volatility increases:

“If you think institutional investors panic at the first sign of volatility, the data suggests otherwise. They remain quite stable.”

Sentiment: Positive