According to CryptoPotato, Bitcoin ETFs are experiencing unprecedented adoption rates among institutional investors. Bitwise chief investment officer Matt Hougan highlighted that Bitcoin ETFs have amassed $17.5 billion in net flows since their launch in January, making them the fastest-growing ETFs in history. Hougan noted that these ETFs are on track to surpass the previous record held by the Nasdaq-100 QQQs, which gathered $5 billion in their first year. The Invesco QQQ, based on the Nasdaq-100 Index, is one of the oldest and most-traded funds on the market.
Despite some critics arguing that Bitcoin ETFs are primarily purchased by retail investors, Hougan pointed out that institutional adoption is significant. He cited 13F filings showing that institutions hold 21% of current ETF assets under management. Hougan emphasized that Bitcoin ETFs lead in institutional adoption, both in terms of the number of institutional holders and assets under management (AUM), compared to other fast-growing ETFs.
Further supporting this narrative, research analyst Sam Baker from investment firm River reported that 60% of the largest American hedge funds have Bitcoin ETF holdings. Notably, none of these funds sold their holdings in the second quarter, with many continuing to accumulate. The largest holder is Millennial Management with 27,263 BTC, followed by Schonfeld Strategic Advisors with 6,734 BTC.
Spot Bitcoin ETFs in the United States have also shown consistent inflows. On August 21, they posted a fifth consecutive day of inflows, totaling $39.5 million, according to preliminary data from Farside Investors. The Grayscale Bitcoin Mini Trust (BTC) led with an inflow of $14.2 million, followed by the Fidelity Wise Origin Bitcoin Fund (FBTC) with $10.7 million. Despite an 8.5% decline in asset prices since the beginning of August, 66% of trading days this month have seen positive inflows for spot Bitcoin ETFs.
