Institutional Interest: 937 Firms Invest $11 Billion in Bitcoin ETFs in Q1

As of March 31, 937 institutions had invested $11.06 billion in U.S. spot BTC-ETF shares. These calculations were made by K33 based on consolidated information from reports to the SEC.

According to 13F reporting, 937 professional firms were invested in U.S. spot ETFs as of March 31. In comparison, gold ETFs had 95 professional firms invested in their first quarter (Bitwise).

Retail owns a majority of the float. Professional investors held exposure of $11.06bn… pic.twitter.com/jYEQZkpDiT

— Vetle Lunde (@VetleLunde) May 16, 2024

In comparison, during the same period, only 95 professional firms invested in gold-based ETFs.

The aforementioned $11.05 billion represents 18.7% of the total assets under management in Bitcoin-based products.

Among the 937 firms is Morgan Stanley, which invested $269.9 million in GBTC.

According to CryptoSlate, Morgan Stanley disclosed in a 13F filing submitted to the SEC in Q1 that it invested US$269.9 million in spot Bitcoin ETF through Grayscale GBTC, making it the largest holder of GBTC after Susquehanna International Group (investing US$1 billion).…

— Wu Blockchain (@WuBlockchain) May 16, 2024

Morgan Stanley became the second-largest holder of Grayscale’s exchange-traded fund after Susquehanna International Group (~$1 billion).

The overall structure of institutional investments is as follows:

• GBTC — $4.38 billion;
• IBIT from BlackRock — $3.23 billion,
• FBTC from Fidelity — $2.1 billion;
• ARKB from ARK Invest and 21 Shares — $760 million;
• BITB from Bitwise — $320 million;
• HODL from VanEck — $160 million.

Less than $40 million is concentrated in other instruments.

The share of institutional investors in various BTC-ETFs:

• BTCW from WisdomTree — 39%;
• HODL — 26%;
• ARKB — 24%;
• FBTC — 21%;
• GBTC — 19%;
• IBIT — 18%;
• BITB — 14%;
• EZBC from Franklin Templeton — 13%.

Summary of the Day

On May 15, net inflows into spot Bitcoin ETFs rose to $303 million, including $131 million into FBTC and $86.3 million into BITB. GBTC was no exception ($27 million). Inflows into IBIT were zero for the third consecutive day. Since their approval, inflows into products have exceeded $12 billion.

The positive trend continued for the third day in a row.

Is Vanguard Joining the Fray?

On March 14, financial giant Vanguard appointed former BlackRock executive Salim Ramji as CEO starting July 8. Known for his positive stance on Bitcoin, he will replace Tim Buckley, who in January stated that Vanguard would refrain from offering spot Bitcoin ETFs to clients.

Ramji, with 25 years of experience, previously led BlackRock’s global ETF business, overseeing the launch of IBIT. In January 2024, he left the company “in search of new leadership or entrepreneurial opportunities outside the firm.”

“I’m not sure this will change Vanguard’s position. But, hell, he will be CEO. Who knows? The door is now ajar,” commented Bloomberg analyst Eric Balchunas.

And yes, Salim Ramji oversaw the filing and logistics for $IBIT and he has been quoted about his interest in digital assets altho I’m not sure that’s gonna change Vanguard’s stance but hell he will be the CEO. Who knows.. Door much more open now IMO.

— Eric Balchunas (@EricBalchunas) May 14, 2024

Nate Geraci, president of The ETF Store, also did not rule out a 180-degree shift in the company’s stance on Bitcoin instruments.

Will be interesting to see if Salim Ramji tries to help Vanguard investors gain access to crypto as he believed in doing for BlackRock investors… https://t.co/GsQzeN1D8V pic.twitter.com/iSEmGJXaru

— Nate Geraci (@NateGeraci) May 14, 2024

Earlier, on May 16, CME Group announced the launch of spot Bitcoin trading in addition to its existing futures product.

Previously, BlackRock’s head of digital assets, Robert Mitchnick, expressed expectations of a new wave of inflows into spot Bitcoin ETFs due to institutional participation.