Investment advisors increased their exposure to Bitcoin ETFs in the second quarter of 2024, while hedge fund stakes saw a dip, reflecting broader market trends.
Bitcoin ETF Holdings Among Advisors Surge in Q2 2024
According to cryptocurrency exchange Coinbase, investment advisers increased their bets on spot Bitcoin ETFs in the second quarter of 2024, while hedge funds somewhat decreased their holdings.
Coinbase reported on August 16 that “more brokerage houses complete their due diligence on these funds,” suggesting that the number of investment advisors owning spot Bitcoin ETFs will continue to rise.
Advisor Bitcoin ETF Holdings Increase by 3% in Q2 2024
A total of 9% of institutional investment is held by holders categorized as “investment advisors,” a proportion that increased by 3% in the second quarter of 2024. The exchange clarified that this is solely applicable to companies with assets over $100 million, as these corporations are obligated to file the 13-F form with the US Securities and Exchange Commission (SEC).
This comes after recent reports from Cointelegraph that Morgan Stanley has given its approval for its 15,000 financial advisors to begin suggesting spot Bitcoin ETFs to clients with high net worth.
While financial advisors may not be able to immediately bring in new clients over the US summer (June–August), Coinbase warned that “large inflows” might be postponed because of this.
More people will be on vacation at this time, it said, but “price action might be choppy.” The price of Bitcoin has fallen 9.86% since July 18 and is currently trading at $59,132.
Hedge Funds Shift Focus from ETFs to Futures Trading
The article went on to explain that hedge fund managers’ holdings have been falling because they have been “trading the basis” or taking advantage of the price differential between Bitcoin futures contracts and Bitcoin exchange-traded funds (ETFs).
The second quarter of 2024 saw a 15% increase, hitting $2.75 billion, in Bitcoin futures contracts listed on the Chicago Mercantile Exchange (CME), according to Coinbase.
ETF Complex Nets $2.4 Billion in Inflows Amid Q2 Market Downturn
Although the asset had “underperformance” during the period, the exchange took heart from the fact that the “ETF complex” received $2.4 billion in net inflows from institutional investors during the second quarter.
According to data compiled by CoinMarketCap, the price of Bitcoin dropped from an all-time high of $71,333 on April 1st into a low of $60,888 on June 30th, marking a fall of approximately 14.6% for the quarter.
Farside data shows that net inflows have totaled $17.35 billion since spot Bitcoin ETFs were launched on January 11th.
