Market makers emerged as the largest institutional Bitcoin ETF owners. However, prominent investors like Millennium and Susquehanna reduced their exposure, likely due to increased competition from new entrants such as Jane Street and calmer market conditions leading to lower trading profits: “Annualized CME premiums closed at 8.6% on June 30, down from 14% on March 31”.
Despite the overall trend, the analyst also notes a positive development with renowned investor Paul Tudor Jones adding a $30 million position in IBIT.
Appetite for Bitcoin ETFs Intensifies
Recent 13-F filings also show increased interest in spot Bitcoin ETFs, according to Coinbase weekly report from Aug. 16.
13-F filings, quarterly reports, required for investment managers with at least $100 million under management, provide a snapshot of the market’s largest players.
These updated 13-F filings reveal that the second quarter of 2024 saw a dramatic increase in institutional holdings of Bitcoin ETFs, with a collective investment of $4.7 billion. In particular, financial giants such as Goldman Sachs and Morgan Stanley significantly increased their Bitcoin ETF positions. In addition, high-frequency trading firm DRW Holdings also joined the fray with a substantial investment.
Bitcoin Dominance Grows Amidst Institutional Inflows
Fueled by strong performance and significant investment, Bitcoin’s market dominance continued to grow in July. The cryptocurrency’s market capitalization relative to the overall crypto market expanded as spot Bitcoin exchange-traded products (ETPs) attracted approximately $3 billion in net inflows during the month, according to Grayscale’s August 1 monthly report.
According to Farside Investors, ETF inflows saw positive dynamics on Aug. 15 with over $11 million worth of inflows. However, this is far less than the cumulative outflows of $81.4 million recorded on August 14.