Bitwise CIO: Bitcoin ETFs breaking records, gaining unprecedented institutional traction

According to Bitwise CIO Matt Hougan, contrary to the popular belief that retail investors are driving the surge in Bitcoin (BTC), data shows that institutions contribute significantly to this trend.

Since its launch in January, Bitcoin ETFs have amassed a staggering $17.5 billion in net flows, outpacing previous records held by other ETFs. For context with this sentiment, the Nasdaq-100 QQQs, the previous record holder, garnered approximately $5 billion within its first year. Bitcoin ETFs are on track to eclipse this benchmark by a wide margin.

Last quarter, institutional ownership of U.S. spot Bitcoin ETFs increased to 24%, up from 21.4% in the first quarter, despite a 13% decline in total assets under management due to falling Bitcoin prices. Notable new institutional investors included Goldman Sachs and Morgan Stanley, contributing to a significant inflow of $2.4 billion during the quarter. Investment advisors' share of total holdings rose, while hedge fund holdings declined.