In a major sign of mainstream adoption, a record number of traditional finance (TradFi) firms are pouring money into Bitcoin exchange-traded funds (ETFs). According to an analysis of 13F filings with the Securities and Exchange Commission (SEC), a whopping 937 U.S. banks, investment managers, hedge funds, and professional firms held investments in spot Bitcoin ETFs as of March 31, 2024.
This surge in institutional interest marks a significant development for the cryptocurrency market. It signifies growing acceptance and integration of Bitcoin into traditional investment strategies.
Hedge funds are spearheading this trend. Industry giants like Millennium Management and Susquehanna International Group (SIG) are making sizable bets, with investments of $2 billion and $1 billion in Bitcoin ETFs, respectively.
Other prominent players joining the game include Bracebridge Capital ($434 million), Boothbay Fund ($377 million), and alternative asset manager Aristeia Capital ($163.4 million). Even established names like investment bank Morgan Stanley ($269 million) and advisory firm Pine Ridge Advisors ($205.8 million) are wading into the Bitcoin ETF market.
The trend isn’t limited to major institutions. Investment firms like Hightower Advisors ($68 million), Fortress Investment Group ($53.6 million), and Cambridge Investment Research ($40 million) are also making noteworthy investments. Interestingly, major banks like JPMorgan Chase and Wells Fargo are taking a more cautious approach with relatively modest investments of $760,000 and $143,000, respectively.
Investors are diversifying their exposure by allocating their funds across several Bitcoin ETFs. Grayscale’s GBTC, BlackRock’s IBIT, Fidelity’s FBTC, and Ark Invest’s ARKB seem to be the most popular choices.
The trend might extend beyond private institutions. The State of Wisconsin Investment Board has already made a significant investment of $163 million in Bitcoin ETFs, potentially paving the way for other state-owned entities to follow suit.
