The evidence is steadily increasing for institutional and national acceptance of Bitcoin as its market cap nears the $2 trillion mark.
The Bitcoin ETF’s approval early last year set the stage for broader adoption among major institutions.
Recent quarterly US 13F filings indicate that fund managers have upped their investments in Bitcoin ETFs within their portfolios.
These institutional insights derive from SEC Form 13F filings and are regarded as cautious estimates.
The disclosures only include institutional investment managers with assets under management (AUM) of at least $100 million, leaving out smaller funds, private institutions, and other organizations not mandated to report.
This fact underscores a significant trend regarding Bitcoin ETF adoption.
Various large asset managers expanded their positions in Bitcoin-related U.S. exchange-traded funds during the December quarter of 2024.
This follows a remarkable 47% increase in the price of the world’s largest cryptocurrency.
According to Wisconsin’s 13F SEC filings, the state’s investment board held 6 million shares of the iShares Bitcoin Trust ETF as of December 31, marking a year-over-year increase of over 100%.
Likewise, other significant investment funds boosted their shares in Bitcoin ETFs that launched in January 2024.
The systematic hedge fund manager Tudor Investment revealed a rise in its holdings of the iShares ETF from 4.4 million shares to 8 million shares.
Currently, the iShares ETF leads in size, boasting assets exceeding $55 billion.
Assets valued at $426.9 million surged from $159.9 million at the end of September, reflecting the rise in Bitcoin’s market value.
Additionally, an SEC filing indicated that Abu Dhabi’s sovereign wealth fund invested $436.9 million in BlackRock’s spot Bitcoin ETF in the final quarter of 2024.
The Mubadala Investment Company from Abu Dhabi executed this purchase, investing $436.9 million in IBIT, coinciding with BlackRock acquiring a commercial license in Abu Dhabi last November.
This development aligns with the UAE’s broader plans to establish itself as a regional digital assets hub. In October, the UAE announced that virtual assets and investment fund management would no longer be subject to value-added tax.
An updated version of the Executive Regulation of the Federal Decree Law by the UAE Federal Tax Authority (FTA) signifies that these adjustments endeavor to reflect prior amendments to the Decree-Law and other relevant tax laws, clarifying key clauses and procedures while providing further information.
Financial services, the management of investment funds, ownership and transfer of virtual assets including cryptocurrencies, and the conversion of virtual assets have been exempted from value-added tax.
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Meanwhile, Barclays has emerged as the latest major financial institution to invest in Bitcoin ETFs, taking a stake in IBIT.
As per a recent filing, Barclays owns 2,473,064 shares of IBIT, amounting to $131 million as of December 31. The bank acquired the ETF in Q4, between October and December.
In a notable shift, hedge fund Hunting Hill Capital was entirely out of the ETF market by the end of the third quarter but returned as a prominent investor with positions valued at approximately $131 million by year-end.
New recruits from financial advisory firms have also seen swift moves toward purchasing Bitcoin ETFs.
A number of ETFs, including those from Fidelity, ARK Investments, and Invesco, experienced boosts in holdings from companies such as Cetera Advisors and NewEdge Advisers.
According to the filings, some investors opted for selectivity. For instance, Cresset Asset Management expanded its holdings with lower fees.
The data from the 13F filings covers the last three months of 2024 and may not accurately depict current holdings.
However, data on ETF flows indicates a rising preference for Bitcoin. Institutions now hold over 300,000 tokens, effectively doubling their holdings compared to the September quarter of 2024.
As additional 13F filings come in and new institutions increase their investments, the data will naturally reflect growth.
Over the past year, institutions have acquired more than 300,000 BTC, surpassing twice the total new supply of Bitcoin generated during that timeframe.
A shortage seems imminent, likely driving the price of Bitcoin upwards.
Retail vs. Institutional
Currently, institutional holdings represent about one-third of all US Bitcoin ETF holdings, with retail holdings dominating at approximately 28%.
Nonetheless, these are cautious estimates that are steadily on the rise.
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 advocates for stablecoin legislation with US lawmakers.
Asia’s First Tokenized Retail Money Market Fund to Launch with Standard Chartered’s Support
Backed by China Asset Management (Hong Kong) and Standard Chartered, the fund utilizes blockchain technology to enhance liquidity, transparency, and accessibility for retail investors.
Argentinian President Javier Milei Faces Fraud Charges After Endorsing Crypto Token $LIBRA
Argentinian President Javier Milei is under fraud investigation after promoting and then deleting a post about $LIBRA, a crypto token that subsequently plummeted in value.
Gaorong Ventures Invests $30 Million in Hashkey, Valuing Crypto Unicorn at $1.5 Billion
This investment underscores the growing interest in crypto startups from Chinese venture capital firms despite regulatory hurdles.
SEC Wants to Delay Coinbase Case While Seeking ‘Potential Resolution’
The SEC is pursuing a 4-week extension, hinting at the possibility of a settlement with Coinbase.
Straits Millennium Secures IPA for Major Payment Institution License in Singapore
Straits Millennium has obtained in-principle approval from the MAS, enhancing digital asset services in Singapore.
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