Institutional Investment in Bitcoin ETFs Grows Among Major Firms

Institutional Interest in Bitcoin ETFs Surges Among Wall Street Giants

As of the end of the second quarter, major investment firms such as Goldman Sachs and Morgan Stanley emerged as leading holders of spot bitcoin (BTC) ETFs, reflecting a significant uptick in their clients’ crypto allocations, which totaled an impressive $4.7 billion.

Goldman Sachs reported a substantial holding of $418 million in bitcoin on behalf of its clients as of June 30, according to a filing with the U.S. Securities and Exchange Commission. This client allocation comes in light of recent statements from the bank’s chief investment officer of the wealth management unit, who indicated in April that there was a lack of interest in cryptocurrencies among their clientele.

In a similar vein, Morgan Stanley – which has recently permitted its brokers to offer bitcoin ETFs to clients – held $188 million in spot bitcoin funds on June 30, marking a decline of $87 million from the previous quarter. Both of these financial powerhouses have shown a preference for BlackRock’s iShares Bitcoin Trust (IBIT), the largest spot ETF currently available. Additionally, they have also invested in Fidelity’s Wise Origin Bitcoin ETF (FBTC) and the Invesco Galaxy Bitcoin ETF (BTCO), among other offerings.

“The accelerated adoption of spot bitcoin ETFs by institutional investors is evident,” stated Nate Geraci, president of the ETF Store. “Typically, institutional investors engage in meticulous due diligence processes, which can prolong the adoption timeline for various investments. The rapid pace at which these investors are entering the realm of spot bitcoin ETFs is nothing short of remarkable.”

A select group of prominent hedge funds has also maintained their stakes in bitcoin ETFs. Notably, Izzy Englander’s Millennium Management has adjusted its position, reducing its holdings in specific funds to 26,000 shares valued at dollar amount, down from 39,000 shares worth dollar amount in the previous quarter. In contrast, Paul Singer’s Elliott Management, which had reported a $12 million stake in BlackRock’s IBIT at the close of the first quarter, has since completely exited this position by the latest reporting date of June 30.

Another significant player in this space is the Wisconsin Pension Fund, which, after doubling its investment in the IBIT, purchased an additional 447,651 shares in the last quarter. This fund also divested all of its holdings in Grayscale’s Bitcoin Trust (GBTC), which were valued at $63.7 million at the end of March. Consequently, as of the end of June, the state now owns 2,898,051 shares, amounting to an impressive $98.9 million.