There is mounting evidence of institutional and national acceptance of Bitcoin as its market value approaches the $2 trillion mark.
The approval of the Bitcoin ETF early last year paved the way for its adoption by large institutions.
The latest quarterly US filings—otherwise known as the 13F filings—show that fund managers have increased their exposure to Bitcoin ETFs in their portfolios.
The institutional insights are based on SEC Form 13F filings and are only cautious estimates.
Only institutional investment managers with assets under management (AUM) of at least $100 million are included in these disclosures; smaller funds, private institutions, and other organizations exempt from reporting requirements are not included in these figures.
That is a telling fact for the adoption of Bitcoin ETFs.
Diverse and large asset managers increased their holdings in Bitcoin-related U.S. exchange-traded funds in the December quarter of 2024.
This was in reaction to the 47% surge in the price of the largest cryptocurrency globally.
According to Wisconsin’s 13-F filings with the SEC, the state’s investment board owned 6 million shares of the iShares Bitcoin Trust ETF as of December 31st, an increase of more than 100% year over year.
Similarly, other major investment funds increased their shares in the Bitcoin ETFs that debuted in January 2024.
The systematic hedge fund manager Tudor Investment announced an increase in its holdings of the iShares ETF from 4.4 million shares to 8 million shares.
The iShares ETF is currently the largest of its kind, with assets exceeding $55 billion.
Valued at $426.9 million, up from $159.9 million at the end of September, those assets climbed in tandem with Bitcoin’s value.
According to another US Securities and Exchange Commission (SEC) filing, Abu Dhabi’s sovereign wealth fund purchased $436.9 million of BlackRock’s spot Bitcoin ETF in the last quarter of 2024.
Abu Dhabi sovereign wealth fund Mubadala Investment Company made the purchase, investing $436.9 million in IBIT, as BlackRock secured a commercial license in Abu Dhabi in November last year.
The move also comes as the wider UAE bolsters its ambitions to become a regional digital assets hub. In October, the UAE declared that Virtual assets and investment fund management are no longer subject to value-added tax.
An updated version of the Executive Regulation of Federal Decree Law by the UAE Federal Tax Authority (FTA) states that the revisions attempt to align with previous revisions to the Decree-Law and other applicable tax laws, to clarify important clauses and processes, and provide more information.
Financial services, management of investment funds, ownership and transfer of virtual assets, including cryptocurrencies, and conversion of virtual assets, are no longer subject to value-added tax.
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Meanwhile, British bank Barclays has become the latest major financial institution to load up on Bitcoin ETFs with a new position in IBIT.
According to a recent filing, Barclays holds 2,473,064 shares of IBIT, valued at $131 million as of 31 December. Barclays purchased the ETF in Q4 between October and December.
In a reversal of sorts, hedge fund Hunting Hill Capital was completely out of the ETF market by the close of the third quarter. However, by the end of the year, they had re-emerged as a significant investor, with positions worth approximately $131 million.
Some new hires came from financial advice businesses whose customers have quickly purchased Bitcoin ETFs.
A number of ETFs, including those from Fidelity, ARK Investments, and Invesco, saw increases in holdings from businesses, including Cetera Advisors and NewEdge Advisers.
According to the filings, some investors were pickier than others. Cresset Asset Management, for example, increased its holdings with lower charges.
The data from the 13F filings is for the end of the last three months of 2024 and does not reflect current holdings.
However, based on ETF flows data, Bitcoin’s flavour is clearly on the rise. Institutions currently possess over 300,000 tokens, effectively doubling their holdings compared to the September quarter of 2024.
As supplementary 13F filings are submitted and new institutions augment their investments, the data will reflect a natural increase.
Over the past year, institutions have acquired more than 300,000 BTC, more than twice the total new supply of Bitcoin issued during that period.
A shortage is imminent, likely pushing up the price of Bitcoin.
Retail vs. Institutional
Institutional holdings account for around one-third of the US Bitcoin ETF holdings, while retail holdings continue to prevail, with about 28% of the share.
Still, at best, those are cautious estimates that are progressively increasing.
Elsewhere
Tether Buys Juventus FC Stake, CEO Works With US Lawmakers on Stablecoin Laws
Tether invests in Juventus FC to merge sports with digital assets, while its CEO pushes for stablecoin laws with US lawmakers
Asia’s First Tokenized Retail Money Market Fund to Launch with Standard Chartered’s Support
Led by China Asset Management (Hong Kong) and supported by Standard Chartered, the fund leverages blockchain technology to enhance liquidity, transparency, and accessibility for retail investors.
Argentinian President Javier Milei Faces Fraud Charges After Endorsing Crypto Token $LIBRA
Argentine President Javier Milei faces fraud charges after promoting and deleting a post about $LIBRA, a crypto token that later crashed in value
Gaorong Ventures Invests $30 Million in Hashkey, Valuing Crypto Unicorn at $1.5 Billion
The investment signals growing interest in crypto startups from Chinese venture capital firms despite regulatory challenges.
SEC Wants to Delay Coinbase Case While Seeking ‘Potential Resolution’
SEC seeks a 4-week extension, hinting at possible Coinbase settlement
Straits Millennium Secures IPA for Major Payment Institution License in Singapore
Straits Millennium gains MAS in-principle MPI approval, expanding digital asset services in Singapore.
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