Bitcoin ETF 13F filings ‘just a down payment’ on BTC: Exec

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    So far, professional investment firms own about $3 billion of BTC ETFs.
    Bitwise exec term $3B as a ‘down payment’ as allocation will increase in 6 months. 

As an analyst with a background in financial markets and experience in following Bitcoin’s trends, I find the recent developments surrounding institutional investment in Bitcoin through BTC ETFs extremely bullish for the long-term future of Bitcoin.

In spite of the volatile market conditions for Bitcoin (BTC), its future remains optimistic and brimming with unprecedented possibilities.

As a crypto investor, I’ve been keeping an eye on the Bitcoin market and following the insights of industry experts. According to Matt Hougan, the Chief Investment Officer at Bitwise Asset Management, we might witness significant inflows into Bitcoin Exchange-Traded Funds (ETFs) over the next six months. Large institutional investors could potentially be ramping up their Bitcoin holdings through these funds.

Hougan expressed a extremely optimistic viewpoint regarding Bitcoin’s future following the confirmation of several reputable firms holding Bitcoin ETFs based on their latest 13F filings.

“The 13F filings for Bitcoin ETFs strongly suggest a optimistic outlook for Bitcoin’s future growth over the long term.”

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Discovering the identities of the buyers and sellers in the spot Bitcoin Exchange-Traded Funds (ETFs) introduced in January has proven to be a complex task. Fortunately, the 13F filings have provided a valuable solution to this conundrum.

As a financial analyst, I’m required by the Securities and Exchange Commission (SEC) to file a 13F report each quarter if I manage over $100 million in assets. These reports disclose my equity holdings to the public.

According to reports, Bracebridge Capital, which is headquartered in Boston, purchased approximately $262 million worth of Fidelity’s Bitcoin Exchange-Traded Fund (ARKB) based on their latest filings.

Why the 13F filings are a bullish case for Bitcoin

As an analyst, I’ve observed that since their launch in January, Bitcoin-linked exchange-traded funds (ETFs) have attracted a total of $11.8 billion in net inflows based on the latest data from SoSo Value. Additionally, these ETFs now manage assets valued at over $50 billion.

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As a financial analyst, based on the latest 13F filing data from last Thursday, I’ve calculated that institutional investors collectively held approximately $3.5 billion in investments linked to Bitcoin Spot Exchange-Traded Funds (ETFs).

Part of Bitwise CIO statement on the filing read, 

As a crypto investor, I’ve closely been monitoring the institutional adoption of Bitcoin ETFs. Based on the latest data from last Thursday, a staggering 563 professional investment firms disclosed ownership of approximately $3.5 billion in Bitcoin ETF assets. Looking ahead to the May 15th filing deadline, my expectation is that we’ll see more than 700 professional firms join this growing trend, collectively managing well over $5 billion in Assets Under Management (AUM).

Bloomberg ETF analyst called the above huge number of BTC large-scale investors ‘bonkers.’

“In my opinion, it’s worth mentioning the large number of holders each of them has amassed – IBIT, for instance, boasts over 250. Quite remarkable for such an early market phase.”

Based on Huogan’s analysis, large-scale investment firms investing in Bitcoin ETFs stood out uniquely among their peers, with gold ETFs in late 2004 being the only comparable counterparts.

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Despite this, it was retail investors who held a larger stake in Bitcoin ETFs compared to larger institutions. According to Hougan’s estimates, investment firms controlled roughly $3-$5 billion worth of these ETFs, representing around 7-10% of the total $50 billion assets under management.

According to Hougan, it’s possible that institutional investors may surpass individual investors in the near future due to their ability to experiment with new investments before bringing them to their clients.

The Bitwise executive anticipates that the following stage will include a select group of expert investors committing funds for a small number of clients, followed by a potential increase of up to 1-5% of their portfolios for wider platform allocation within the next six months.

The implied meaning is that the disclosed amounts in the 13F filings might be just an initial deposit, with potential for significant growth within the following half-year.

‘This tells me that the allocations we see in recent 13F filings are just a down payment.’

If Hougan’s predictions materialize for prominent investment companies by the second half of 2024, there is a strong likelihood that substantial inflows will ensue. This influx could contribute to a price rise in Bitcoin during the same timeframe.

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2024-05-16 07:04