Bitcoin ETFs see success with 20% institutional exposure
Bitcoin (CRYPTO:BTC) exchange-traded funds (ETFs) have seen strong performance, with institutional investors holding approximately 20% of all spot Bitcoin ETFs, according to data disclosed by Ki Young Ju, founder of CryptoQuant.
As of October 18, institutions hold just over 193,000 BTC out of the total 961,645 BTC in these ETFs.
Among the ETFs, Ark Invest’s ARKB leads with 32.79% institutional holdings, while BlackRock’s IBIT and Fidelity’s FBTC follow with 18.38% and 24.14%, respectively.
Despite the relatively modest institutional interest, analysts see positive signs.
Jim Bianco, a macro investment researcher, noted that most inflows are from on-chain holders rather than institutions.
He emphasised that some public pension funds, like the State of Wisconsin, are well-positioned to explore Bitcoin exposure, but many underfunded and poorly managed funds might face challenges investing in Bitcoin ETFs due to their financial constraints.
Bloomberg ETF analyst James Seyffart expressed optimism, stating that Bitcoin ETFs have been the most successful ETFs in terms of performance.
He compared the current 20% institutional holdings of Bitcoin ETFs to gold ETFs, which only reached 40% institutional exposure after many years.
Seyffart added that financial advisors have driven significant inflows, with over $2 billion allocated to Bitcoin ETFs, including $1.5 billion directed to BlackRock’s IBIT.
Moreover, BlackRock’s IBIT ETF recently pulled in more than $1 billion in net flow, bringing its year-to-date inflows to over $22 billion.
This achievement places it among the top three best-performing ETFs of 2024, despite being relatively new.
The ongoing success of Bitcoin ETFs is now prompting asset managers to anticipate potential approvals for ETFs tied to other cryptocurrencies like Solana (CRYPTO:SOL), Litecoin (CRYPTO:LTC), and Ripple (CRYPTO:XRP).
At the time of writing, the Bitcoin price was $67,008.45.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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