This week’s 13F filing revealed who is buying Bitcoin ETFs and how big their position is, and while Matt Hogan, Bitwise’s investment office, celebrated the success of the ETFs, he said there were an important point that the media might miss and that makes it even. More optimistic on BTC ETFs.
Hogan said 563 professional investment firms reported holding a total of $3.5 billion in Bitcoin ETFs. Hogan expects these numbers could eventually exceed 700 companies with total assets under management approaching $5 billion.
Hogan’s guess was correct, as the latest data from K33 Research revealed that more than 900 companies disclosed their Bitcoin ETF spot holdings.
In a May 16 article on X, Ventle Lunde, principal analyst at K33 Research, shared the following chart, saying:
“According to 13F reports, 937 professional companies were invested in US cash ETFs as of March 31. In comparison, gold ETFs invested in 95 professional companies in the first quarter (Bitwise).
The largest ETFs attracted the bulk of institutional capital, with BlackRock’s IBIT attracting more than 400 holders, noted Eric Balchunas, senior ETF analyst at Bloomberg.
While calling it a “huge success,” Hogan said:
“It’s so huge. For any financial advisor, family office or organization wondering if they are the only one considering exposure to Bitcoin, the answer is clear: you are not alone.
However, the CEO pointed out that with over $50 billion in assets under management (AUM), professional investors hold only 7-10% of the total investment, and data from K33 Research reveals that this share is 18%.
Lunde X’s post explains:
“Retail companies hold the majority of shares on offer. Professional investors held $11.06 billion in risk at the end of the first quarter, representing 18.7% of Bitcoin ETF assets under management.
However, Hogan said the media portrayal of Bitcoin ETFs as “retail-focused” money might overlook a crucial emerging trend that makes him “incredibly bullish” on initial 13F filings.
Bitwise’s CTO outlined a typical four-step investment journey seen among institutions, starting with a 6-12 month investment evaluation due diligence period. The second step is for professionals to allocate a small personal amount before “exposing their investors to the market”. Ultimately, this leads to larger platform-level allocations across the entire client portfolio, typically ranging from 1-5% of the portfolio, approximately six months after the initial allocation.
“This tells me that the provisions we see in recent 13F filings are just a down payment,” Hogan wrote.
Using Hightower Advisors as an example, Hougan explained that the Spot Bitcoin ETF’s current allocation is just 0.05% of its assets. However, if they followed the typical four-step investment process, a 1% allocation at the right time would equate to $1.2 billion from a single company.
“Multiply that by the growing number of professional investors involved in this space, and you start to understand why I’m excited.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.
