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Institutional Investors Fuel Bitcoin ETF Boom

Coin WorldMonday, Feb 17, 2025 2:13 pm ET

1min read

Institutional investors have amassed a significant stake in Bitcoin exchange-traded funds (ETFs), with their holdings reaching $27 billion as of the latest data. This represents over 25% of the total assets under management (AUM) in Bitcoin ETFs, indicating a growing interest from institutional investors in the cryptocurrency market.

According to K33 Research, the percentage of Bitcoin ETF AUM held by institutions grew by 113% between the third and fourth quarters of 2024. Additionally, the AUM ratio held by institutions increased by 4.1% quarterly, with the total amount jumping 69% to $78.8 billion at the end of the fourth quarter. The number of investors exposed to Bitcoin via ETFs reached 1,576 in the last quarter, a 37.4% quarterly leap and a 68.2% yearly leap.

Institutional interest in BlackRock's iShares Bitcoin Trust (IBIT) grew significantly in 2024. Institutions reported $16 billion in IBIT shares at the end of the fourth quarter, compared to less than $4 billion at the end of the first quarter. This growth was primarily recorded between the third and fourth quarters. Mubadala Investment Company, one of Abu Dhabi's largest sovereign wealth funds, reported nearly $437 million in Bitcoin exposure through IBIT at the end of the fourth quarter. The State of Wisconsin Investment Board (SWIB) increased its BTC investment via IBIT by 110% in the same period, surpassing $321 million and only holding exposure through BlackRock's IBIT.

Fidelity's FBTC also expanded considerably, nearly 100% quarterly. However, the total AUM of institutional holdings is still around $5 billion. BlackRock's spot Bitcoin ETF has nearly $56.4 billion in AUM, while the total AUM of all other US-traded spot Bitcoin ETFs combined is $56.9 billion.

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