Even though Bitcoin prices have been going down lately, institutional interest in Bitcoin exchange-traded funds (ETFs) rose by 27% in the second quarter of 2024. A senior expert at K33 Research named Vetle Lunde said that during the quarter, more than 262 new companies put funds into U.S.-based spot Bitcoin ETFs.
Lunde said that long-term institutional adoption could push Bitcoin prices to all-time highs, since these buyers have a lot of funds that can affect crypto markets. But small investors are still the most important group. As of Q1 2024, they held 81.3% of all ETF assets under control.
“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.”
Bitcoin ETF Inflows Positive
Since August 14, Bitcoin fell below the $60,000 mark, it has been hard for the price to stay above that level. Bitcoin was worth $58,370 at 10:49 am UTC, which is 3.3% less than it was a week ago. On August 15, ETF inflows quickly turned positive with $11 million, but this was overshadowed by outflows of $81.4 million the day before.
“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.”
Even though major investors are putting funds into Bitcoin ETF, the price is still going down. In the past, ETF investments have had a major impact on the prices of cryptocurrencies. By mid-February, about 75% of all new Bitcoin investments were in ETFs.
