The latest 13F filing has revealed the buyers of spot Bitcoin ETFs and their position sizes. Bitwise’s Chief Investment Officer, Matt Hougan, expressed his excitement about the success of the ETFs but highlighted a crucial point that the media might overlook, making him even more bullish on BTC ETFs.
According to Hougan, 563 professional investment firms have reported owning a combined $3.5 billion worth of Bitcoin ETFs. He expects these numbers to increase, potentially surpassing 700 firms with total assets under management reaching $5 billion.
Hougan’s prediction was accurate, as the most recent data from K33 Research shows that over 900 firms have disclosed their spot Bitcoin ETF holdings. Senior analyst at K33 Research, Ventle Lunde, shared a chart on May 16 demonstrating this trend.
Bloomberg’s Senior ETF analyst, Eric Balchunas, noted that the largest ETFs have attracted the most institutional capital, with BlackRock’s IBIT having over 400 holders.
Hougan described this as a “huge success.” However, he also pointed out that professional investors own just 7-10% of the total investment, despite managing over $50 billion in assets. K33 Research data indicates that this share is actually 18%.
Hougan argued that the media’s portrayal of spot Bitcoin ETFs as “retail-driven” funds might overlook a significant emerging trend that makes him “incredibly bullish” based on the initial 13F filings.
He explained a typical four-step investment trajectory observed among institutions. This begins with a period of due diligence lasting 6-12 months, followed by professionals making a small personal allocation before exposing their investors to the market. Eventually, this leads to more substantial platform-wide allocations across the entire client book, typically ranging from 1-5% of the portfolio, about six months after the initial allocation.
Hougan concluded that the allocations seen in recent 13F filings are just the beginning, as institutions will likely increase their investments over time. Using Hightower Advisors as an example, he explained that their current spot Bitcoin ETF allocation is only 0.05% of their assets. However, following the typical four-step investment process, a 1% allocation would equate to $1.2 billion from a single firm.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and make informed decisions when it comes to investments and trading.