Flow

Bitcoin ETF

Bitcoin

The institutional adoption of spot Bitcoin exchange-traded funds (ETFs) saw a significant uptick during the second quarter of 2024 despite Bitcoin’s recent correction.
Institutional adoption of the United States-based spot Bitcoin (<a href="https://cointelegraph.com/bitcoin-price" rel="" target="_self">BTC</a>) ETFs grew by over 27% during the second quarter of 2024.
Over 262 new firms have invested in spot Bitcoin ETFs, according to Vetle Lunde, a senior analyst at K33 Research, who wrote in an Aug. 16 X <a href="https://x.com/VetleLunde/status/1824381970425540749" rel="null" target="null">post</a>:
<blockquote>
 “According to 13F filings, 1,199 professional firms held investments in U.S. spot ETFs as of June 30, marking an increase of 262 firms over the quarter.”
</blockquote>
<figure>
 <img alt="Institutional adoption of Bitcoin ETFs surges 27% in Q2" name="" src="https://s3.cointelegraph.com/uploads/2024-08/GVGAneoXYAA5tr8">
 <figcaption style="text-align: center;">
 Bitcoin ETF, institutional holder growth. Source: Vetle Lunde
 </figcaption>
</figure>
Continued institutional ETF adoption could significantly bolster Bitcoin’s price since institutions hold large amounts of capital that can move crypto markets. Bitcoin needs continued institutional adoption to reach new all-time highs.
Related: <a href="https://cointelegraph.com/news/first-leveraged-microstrategy-etf-launches-us" rel="null" target="null">First leveraged MicroStrategy ETF launches in US</a>
<h2 id="retail-investors-still-hold-the-majority-of-bitcoin-etfs">Retail investors still hold the majority of Bitcoin ETFs</h2>
Despite the growing institutional adoption of Bitcoin ETFs, retail investors are still the largest holder cohort, according to Lunde:
<blockquote>
 “While retail investors still hold the majority of the float, institutional investors increased their share of total AUM by 2.41 percentage points, now accounting for 21.15% in Q2.”
</blockquote>
<figure>
 <img alt="Institutional adoption of Bitcoin ETFs surges 27% in Q2" name="" src="https://s3.cointelegraph.com/uploads/2024-08/etf%20aum%202">
 <figcaption style="text-align: center;">
 13F/13G ownership % of total BTC ETF AUM
 </figcaption>
</figure>
Institutional investors only owned 18.7% of the total ETF assets under management (AUM) during the first quarter of 2024.
Related: <a href="https://cointelegraph.com/news/bitcoin-bull-signal-price-breakout-2024" rel="null" target="null">Key Bitcoin bull signal flashes for first time in nearly 2 years, hinting at 2x price surge</a>
<h3 id="uptick-in-institutional-bitcoin-etf-exposure-unable-to-lift-bitcoin-above-60-000">Uptick in institutional Bitcoin ETF exposure unable to lift Bitcoin above $60,000</h3>
The Bitcoin price has been struggling to gain momentum past the $60,000 psychological mark despite the growing institutional portfolio allocation to US Bitcoin ETFs.
Bitcoin fell under $60,000 on Aug. 14. The world’s first cryptocurrency is down 3.3% on the weekly chart, trading at $58,370 as of 10:49 am UTC.
<figure>
 <img alt="Institutional adoption of Bitcoin ETFs surges 27% in Q2" name="" src="https://s3.cointelegraph.com/uploads/2024-08/Screenshot%202024-08-16%20134909">
 <figcaption style="text-align: center;">
 BTC/USD, 1-week chart. Source: Cointelegraph
 </figcaption>
</figure>
Contributing to the price slump, Bitcoin ETF inflows continue to stagnate. ETF inflows turned positive on Aug. 15, with over $11 million worth of inflows, according to Farside Investors data.
<figure>
 <img alt="Institutional adoption of Bitcoin ETFs surges 27% in Q2" name="" src="https://s3.cointelegraph.com/uploads/2024-08/Screenshot%202024-08-16%20135636">
 <figcaption style="text-align: center;">
 Spot Bitcoin ETF flows (US dollars, million). Source: Farside Investors
 </figcaption>
</figure>
However, this is far less than the $81.4 million worth of cumulative outflows recorded on Aug. 14.
<a href="https://cointelegraph.com/explained/what-are-etf-fund-flows-and-why-do-they-matter" rel="" target="_self">ETF inflows can significantly contribute</a> to a cryptocurrency’s price appreciation. For Bitcoin, ETFs accounted for about <a href="https://cointelegraph.com/news/bitcoin-etfs-about-75-new-investment" rel="null" target="null">75% of new investment</a> in the cryptocurrency by Feb. 15 as it surpassed the $50,000 mark.
Magazine: <a href="https://cointelegraph.com/magazine/china-crypto-ban-investors/" rel="null" target="null">How Chinese traders and miners get around China’s crypto ban</a>

Institutional adoption of Bitcoin ETFs surges 27% in Q2

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