Bitcoin exchange-traded funds (ETFs) are thriving, with institutional investors holding only 20% of all spot Bitcoin ETFs, according to CryptoQuant founder Ki Young Ju. This data is based on form 13F filings and reveals that institutional investors own slightly over 193,000 BTC out of the total 961,645 BTC held by these ETFs. The highest percentage of institutional holders is held by Ark Invest ARKB (32.79%), followed by WisdomTree BTCW (24.55%).
Despite the relatively low institutional exposure, Bitcoin ETFs have been deemed a massive success by Bloomberg ETF analyst James Seyffart. They have performed exceptionally well and have seen significant inflows from retail investors. Seyffart compared the institutional holdings in Bitcoin ETFs to those in Gold ETFs, noting that the largest Gold ETF only has 40% institutional holdings.
Financial advisors have also played a significant role in the success of Bitcoin ETFs, with over $2 billion in inflows, primarily going to BlackRock IBIT. Seyffart believes that this level of inflow is a positive sign for the asset class and will attract more significant institutional investors.
In terms of performance, BlackRock IBIT is one of the top three best-performing ETFs in 2024, with a year-to-date flow of over $22 billion. This achievement is impressive considering the ETF has only been around for 10 months.
Looking ahead, asset managers are preparing for the potential approval of ETFs for other cryptocurrencies, such as Solana, Litecoin, and Ripple XRP. However, there is speculation that the approval of any additional crypto ETFs may be unlikely if Kamala Harris becomes the next Vice President of the United States.