A recent analytical report reveals that institutional exposure to the pioneering cryptocurrency Bitcoin saw notable upticks in the fourth quarter of 2024.
Bitcoin is becoming an asset class of choice among institutional investors. Its historical performance and reputation against inflation have been primary lures to the largest cryptocurrency by market cap.
The approval of the US Bitcoin spot exchange-traded funds (ETFs) last year has made buying the asset easier for traditional retail and institutional investors. Notably, the Bitcoin products have continued to gain traction, recording a cumulative net inflow of $40 billion as of today.
Meanwhile, a recent report shows an impressive uptick in institutions holding US Bitcoin ETFs in the fourth quarter of 2024. These jaw-dropping stats indicate the growing demand for investment tools that allow exposure to the premier asset.
429 More Institutions Bought Bitcoin in Q4
Vetle Lunde, the head of research at K33 Research, shared data showing that 429 more institutional investors bought Bitcoin ETFs in the fourth quarter of last year. The report, drawn from the recent 13F filings, revealed that the number of investment managers holding Bitcoin surged from 1,147 to 1,576 in Q4 2024.
Quarterly Institutional ETFs Exposure
Furthermore, the improved acquisition increased institutions’ shares in Bitcoin ETFs by 113% in Q4 2024. The data shows that the combined assets under management (AUM) for entities holding the US Bitcoin spot ETFs grew from $12.58 billion in Q3 to $26.79 billion in Q4.
Consequently, the percentage of Bitcoin ETFs held by institutions increased. As of December 31, 2024, the unique holders account for 25.38% of the AUM of the US Bitcoin ETFs, up from 21.29% quarter over quarter.
BlackRock’s IBIT Exacts Dominance
Meanwhile, the BlackRock iShares Bitcoin Trust (IBIT) spearheaded the institutional adoption curve in the fourth quarter of 2024. Most institutional investments into the US Bitcoin products flowed into the issuer, which is owned by the largest asset manager by AUM.
IBIT shares owned by investment firms surged to $16 billion by year-end, over 200% higher than their almost $6 billion valuation in Q3. This is also a strong uptick from the $4 billion in Q1 2024.
Institutional Exposure by Issuer
Notably, 13F reports from firms like Goldman Sachs, JP Morgan, Avenir Group, and Barclays Bank further add perspective to these stats. These institutions revealed preferences for BlackRock’s IBIT in their Bitcoin ETF allocations.
Nonetheless, the Fidelity Wise Origin Bitcoin Trust (FBTC) also saw substantial upticks. The issuer is the only other issuer where institutions hold more than $5 billion worth of its shares.
Notably, the massive inflow in Q4 coincided with bullish momentum from Donald Trump’s election win. The pro-Bitcoin president flirted with cryptocurrency while vying for the presidency, attracting institutional interest in the sector.
