The latest 13F filing has revealed some interesting insights about the buyers of spot Bitcoin ETFs and their position sizes. Bitwise Chief Investment Officer, Matt Hougan, expressed his excitement about the success of the ETFs but also highlighted a significant point that the media might overlook, which makes him even more optimistic about the BTC ETFs.
According to Hougan, 563 professional investment firms have reported owning a combined $3.5 billion worth of Bitcoin ETFs. He predicts that these numbers could potentially surpass 700 firms, with total assets under management reaching $5 billion.
Hougan’s prediction was proven right, as the latest data from K33 Research shows that over 900 firms have disclosed their spot Bitcoin ETF holdings. In a post on X, Senior Analyst at K33 Research, Ventle Lunde, shared a chart that displayed the unique owners of Bitcoin ETFs in Q1.
Bloomberg Senior ETF Analyst, Eric Balchunas, noted that the largest ETFs have attracted the most institutional capital, with BlackRock’s IBIT having over 400 holders.
While Hougan considers this to be a “huge success,” he also points out that professional investors only own 7-10% of the total investment, despite having over $50 billion in assets under management. However, data from K33 Research reveals that this share is actually 18%.
Hougan believes that the media’s portrayal of spot Bitcoin ETFs as “retail-driven” funds might overlook an important emerging trend that makes him extremely optimistic based on the initial 13F filings.
He outlines a typical four-step investment trajectory observed among institutions, starting with a period of 6-12 months of due diligence for investment evaluation. The second step involves professionals making a small personal allocation before exposing their investors to the market. Eventually, this leads to larger platform-wide allocations across the entire client book, typically ranging from 1-5% of the portfolio, about six months after the initial allocation.
Hougan concludes that the current allocations seen in 13F filings are just the beginning, describing them as a “down payment.” He uses Hightower Advisors as an example, explaining that their current spot Bitcoin ETF allocation is only 0.05% of their assets. However, if they were to follow the typical four-step investment process, a 1% allocation would equate to $1.2 billion from a single firm.
It’s important to note that this article does not provide any investment advice or recommendations. Readers should conduct their own research and assessment of risks before making any investment or trading decisions.