When it comes to crypto, familiarity is important. People tend to buy the brands they know more than the ones they don’t. So, while new brands may be exciting for a while, they tend not to be able to sustain that momentum for long. However, according to Bitwise, Bitcoin ETFs have not fallen into this category.

More: BTC Price Analysis - How BTC Performed This Week

Bitcoin’s price might have fallen by 12% in the second quarter, but this has not stopped Bitcoin ETFs from keeping their upward momentum. According to a report shared by Bitwise, the asset manager, many institutional investors have significantly increased their allocations in BTC ETFs, and they don’t seem to be stopping anytime soon. 

According to the report, the aggregate number of institutional investors holding positions in Bitcoin Exchange-traded Funds in this second quarter increased to 1,100 from 965 in the first quarter, an impressive 14% increase. 

This increase in BTC ETF investments is going strong regardless of the availability of other alternative investments. Brazil’s securities regulator, the Comissão de Valores Mobiliários (CVM), has just approved a new Solana ETF. According to the CVM’s database, the new ETF is to be offered by Brazil-based asset manager Hashdex.

Despite other offerings such as this, institutional investment in BTC ETFs is going from strength to strength. The Bitwise report also showed that these investors’ share of total assets under management (AUM) of Bitcoin ETFs grew to 21.15% from 18.74%. In addition, the institutions had a total of $11 billion in BTC ETFs at the end of the quarter. 

Another Bitwise report published earlier showed that around 66% of institutional investors either held on to or increased their holdings in Bitcoin Exchange-traded funds during the second quarter.

13F filings submitted to the US Securities and Exchange Commission broke down the figures to show that exactly 44% of asset managers increased their Bitcoin ETF positions in Q2 2024. Meanwhile, 22% held on to what they had, neither buying more nor selling them off.

But that’s not to say it’s all perfect. The data also shows that 21% of institutional investors decreased their positions while the remaining 13% exited. Still, the 66% is not bad at all, and Bitwise’s chief investment officer, Matt Hougan, certainly agrees.

Hougan mentioned in an August 15 X post that it’s “a pretty good result, on par with other ETFs.” All things considered, it is an impressive result that shows the upward trend of BTC ETFs. Of course, there will be some sell-offs here and there, but numbers like this tell us that BTC ETFs, although relatively still a newcomer in the game, are very much here to stay.

Related: Bitcoin ETFs Fuel Parabolic Potential. Analysts Predict New Highs Amid Surging Inflows

Goldman Sachs has disclosed that the company has positions in seven out of the eleven bitcoin ETFs in the US. Many other institutions have similar positions. Not to sound dramatic, but " the institutions are coming, and they are coming in size,” just as the report said.

Exploring Speculations Surrounding Bitcoin ETFs and the Future Trajectory of BTC & Altcoins | HODL FM
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