Based on new ETF reports, Bitwise Chief Investment Officer Matt Hougan has found three signs that the price of Bitcoin is going up. Even though Bitcoin hasn’t done well lately, the Q2 13-F reports for spot exchange-traded funds (ETFs) show that institutional investors are becoming more interested in it, which is a good sign.
Hougan said that in the second quarter, there was a major increase in the number of institutions that were investing in Bitcoin ETFs. “I count 1,924 holder-ETF pairs across all 10 ETFs, up from 1,479 in Q1, a 30% increase despite falling prices in Q2,” Hougan said.
The fact that Bitcoin is growing so quickly shows that big buyers are starting to see it as a long-term asset, not just a short-term investment.Hougan made it clear, though, that the 1,924 number includes companies that hold positions in more than one ETF. The percentage increase still shows a strong trend, though.
Bitcoin ETFs See Growth
He saw that institutional buyers kept buying Bitcoin ETFs in Q2. Of those who filed in Q1, 44% increased their positions, 22% kept them the same, 21% decreased their exposure, and 13% sold. Over two-thirds of institutions either kept or grew their exposure to BTC ETFs during a time of market volatility, which shows that they were strong.
“The numbers don’t support the idea that institutional investors would freak out at the first sign of volatility. “They’re pretty steady,” Hougan said.
Hougan’s research also shows that Bitcoin ETFs have a wide range of buyers. For example, Millennium, Schonfeld, Boothbay, and Capula are some of the biggest hedge funds that own them. It is interesting to see that advisors, family offices, and big investors like the State of Wisconsin are present.
“Many types of buyers are interested in ETFs. It’s great that Millennium and the State of Wisconsin are both filing these ETFs. “Over time, I’d like wealth managers and pension plans to make up an increasing amount of it,” Hougan said.
A recent SEC filing from the Wisconsin Pension Fund showed that it now owns more Bitcoin ETFs than it did in May. As of June 30, the fund reported owning 2,898,051 shares of the iShares BTC Trust, which are worth $98.9 million. This is up from 2,450,400 shares.
