Despite bitcoin's decline in the second quarter, institutional investors have continued to buy it. They now hold nearly …
ETFs still in vogue
Bitcoin ETFs continue to fill up. They gobbled up $252 million last Friday alone. That is, the day of Fed Chairman Jerome Powell’s “dovish” speech in Jackson Hole.
The weekly total was $506 million. It was the best week in a month. More than $200 million was added to that on Monday.
It’s simple, BlackRock’s Bitcoin ETF has the third-largest inflow of thousands of global ETFs. Its BTC holdings are worth over $20 billion.
Overall, ETFs have raised more than $18 billion since their launch (net). Up 32% over the last three months:
ETFs now hold 922,000 BTCAt this rate, the symbolic threshold of one million BTC will be reached in a few months and 22,000,000 BTC in about twenty years…
On the contrary, Ethereum ETFs are a disaster. While Bitcoin ETFs had sucked up $2.8 billion in the first month of listing, Ethereum ETFs suffered a hemorrhage of $460 million.
This negative figure is possible due to the pre-existence of Grayscale’s ETH ETF. And by the way, even the Ethereum Foundation took advantage of the euphoria to sell the equivalent of $100 million worth of ETH. Ethereum is down 34% against bitcoin over the past year.
All of these numbers are interesting, but knowing who is buying is also instructive. That’s according to the list of Bitcoin ETF holders released once a quarter.
Who buys bitcoin?
We have this information through Form 13F. This is a document that must be filed by institutions managing more than $100 million in assets.
Note that NYDIG has reorganized its investor classification system for greater clarity.
“These adjustments will help us avoid misleading headlines such as ‘Goldman Sachs owns bitcoin ETFs,’ which is technically true, but only in the context of their brokerage business and likely as a market maker, not in the context of their investment advisory business.”we can read in the NYDIG report.
It turns out that even though bitcoin ended the second quarter down, all major categories of holders still loaded the mule:
The “non-filers” category corresponds to all entities managing less than $100 million. These are retail investors. They hold the majority of ETF shares (78%).
The decrease in their total dollar position from $47.6 billion to $40.8 billion was only due to the decline in bitcoin. They actually remained long, investing $637.5 million, or a quarter of the total inflows into ETFs for the second quarter.
With a net purchase of $1.1 billion, investment advisors remain loyal Bitcoin salespeople. The amount of Bitcoin ETF shares held by investment advisors increased to $4.3 billion at the end of June.
Finally, let’s recall that the Wisconsin State Pension Fund made headlines when the list of investors in Bitcoin ETFs was first published. Unfortunately, this pleasant surprise did not generate a larger wave of allocations from pension funds.
We'll have to watch closely how this list evolves in Q3 now that Donald Trump has pledged allegiance to bitcoin.
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