Institutional Demand for U.S. Spot Bitcoin ETFs Goes Through the Roof
Contrary to the skepticism of traditional financial players, institutional demand for Bitcoin ETFs is up. As many as $13 billion worth of shares in U.S. spot Bitcoin ETFs have been purchased by American institutions since trading commenced in January 2024, data from CryptoQuant CEO Ki Young Ju indicated on October 22.
Spotlight on Major Financial Players
Quarterly Form 13F filings, required by U.S. wealth managers to disclose their equity holdings, now reflect that 1,179 institutions collectively hold 193,064 Bitcoin (BTC). Meanwhile, financial giants Millennium Management and Jane Street have taken up a combined 20% of the total spot Bitcoin ETF market, valued at $65 billion spread over 11 ETFs between major firms BlackRock, Bitwise, Grayscale and Fidelity.
From Skepticism to Mainstream Adoption
The near-parabolic rise in institutional investment in Bitcoin ETFs is directly proportional to the aggressive adoption of traditional finance into the asset class. What once met skepticism would become an integral holding for many institutional portfolios today. According to Bloomberg analyst Eric Balchunas, while it takes a couple of years to adopt new products that come available to them, it would also mean that the eventual market adoption of a spot Bitcoin ETF shows its long-term viability.
BlackRock’s Record-Breaking BTC ETF
One of the inventions in the space includes BlackRock’s spot Bitcoin ETF, which has grown to be the fastest-growing ETF in U.S. financial history. Although its launch was less than a year ago, BlackRock’s IBIT ETF has already set up the third-largest inflows competing with other ETFs that have existed for decades.
Bitcoin Price Rally on the Horizon?
In this vein, increasing institutional participation in Bitcoin ETFs will provide the next significant impetus in price appreciation. At $67,000, the price action of Bitcoin has considerably slackened from its recent high. However, many analysts were projecting that Bitcoin would breach past $100,000 by early 2025, although some pundits, including MicroStrategy’s Michael Saylor, went as high as a vertical rise to $13 million in 2045.
Market Volatility Ahead of U.S. Election
While optimism abounds for the future of Bitcoin, firms such as QCP Capital caution against a short-term move likely to happen in the wake of the U.S. presidential elections. However, researchers remain optimistic that over time, market fluctuations will reach a stasis, enabling the digital assets sector to continue in an upward trajectory.
