The Bitcoin ETF market is booming, with more and more investors piling in. A recent report by Bloomberg shows that over 700 new funds have bought into Bitcoin ETFs, bringing the total number of holders to nearly 1,950.
Who’s Buying?
Everyone from hedge funds like Millennium Management and Point72 Asset Management to pension funds and even the State of Wisconsin Investment Board are getting in on the action. The list of buyers is global, with funds from Hong Kong, the Cayman Islands, Canada, and Switzerland all jumping on the Bitcoin bandwagon.
Bitcoin’s Price Dip Doesn’t Stop the Flow
Despite Bitcoin’s price dipping by 13% in the last quarter, Bitcoin ETFs have seen a net inflow of $17 billion this year. BlackRock’s IBIT ETF is a standout, with assets swelling to $20 billion.
A Sign of Confidence
Noelle Acheson, a crypto expert, says the growing number of Bitcoin ETF holders shows that investors are confident in the market and are doing their research. However, not all financial advisors can recommend these ETFs to their clients yet. Morgan Stanley is the only major financial institution that allows its advisors to recommend Bitcoin ETFs, but others are expected to follow suit, which will bring even more demand.
Beyond Bitcoin: Ethereum ETFs Gaining Traction
The institutional adoption isn’t just limited to Bitcoin. Ethereum ETFs have also seen significant inflows, totaling $1.9 billion. This is despite the Grayscale Ethereum Trust (ETHE) converting to an ETF last month and seeing $2.3 billion in outflows.
More Crypto Products on the Horizon
Adam Guren, founder of Hunting Hill Global Capital, a hedge fund that owns IBIT ETF shares, says his firm has been involved in the cryptocurrency space since 2016. They see opportunities in providing liquidity for the ETF market and plan to introduce more crypto products in the US, including options on Bitcoin and Solana ETFs.
The Bitcoin market is hot right now, and it seems like the trend is only going to continue. With more and more institutional investors getting involved, the future of Bitcoin ETFs looks bright.
