Cryptocurrencies

This week’s 13F filing revealed who is buying Bitcoin ETFs and what

This week’s 13F filing revealed who buys Bitcoin ETFs and how big their position is, and while Matt Hogan, Bitwise’s chief investment office, celebrated the success of the ETFs, he said there’s an important point the media might miss that makes it even. More bullish on BTC ETFs.

Hogan said 563 professional investment firms reported holding a total of $3.5 billion worth of 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 spot Bitcoin ETF holdings.

In a May 16 post on X, K33 Research senior analyst Ventle Lunde shared the following chart, saying:

“According to 13F reports, 937 professional firms were invested in US spot ETFs as of March 31. In comparison, gold ETFs invested in 95 professional companies in the first quarter (Bitwise).”

Unique Owners of Bitcoin ETFs Q1. Source: K33 research

The largest ETFs have attracted the bulk of institutional capital, with BlackRock’s IBIT attracting more than 400 holders, noted Eric Balchunas, senior ETF analyst at Bloomberg.

This Week'S 13F Filing Revealed Who Is Buying Bitcoin Etfs And What
source: Eric Balchunas

While calling this a “huge success,” Hogan said:

“This is so huge. For any financial advisor, family office, or organization wondering if they’re the only ones considering exposure to Bitcoin, the answer is clear: you’re 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 K33 Research data reveals that this share is 18%.

Lunde X’s post explained,

“Retail companies own the majority of the shares on offer. Professional investors held $11.06 billion in risk by the end of the first quarter, representing 18.7% of Bitcoin ETFs’ AUM.

This Week'S 13F Filing Revealed Who Is Buying Bitcoin Etfs And What
Spot Bitcoin ETF AUM by Group. Source: K33 research

However, Hogan said the media’s portrayal of Bitcoin ETFs as “retail-driven” money may ignore a crucial emerging trend that makes it “incredibly bullish” from initial 13F filings.

Bitwise’s CTO has laid out a typical four-step investment path seen among institutions, starting with a 6-12 month due diligence period of investment evaluation. The second step involves professionals allocating a small personal amount before “exposing their investors to the market.” Ultimately, this leads to larger platform-level allocations across the entire client book, typically ranging from 1-5% of the portfolio, about 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 current Spot Bitcoin ETF’s allocation amounts to 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 can start to see why I’m excited.”

This article does not contain investment advice or recommendations. Every investment and trading move involves risks, and readers should conduct their own research when making a decision.

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