Coinbase, a leading cryptocurrency exchange, has reported a significant increase in institutional inflows into U.S. spot Bitcoin ETFs, according to updated 2Q 2024 13-F filings. The company views this development as a positive sign for the Bitcoin market, despite the cryptocurrency’s price drop during the quarter.
The 13-F filings, released on August 14, reveal that institutional ownership of U.S. spot Bitcoin ETFs grew from 21.4% to 24.0% between Q1 and Q2 of 2024. Of particular note is the increase in the proportion of ETF shares held by the “investment advisor” category, which rose from 29.8% to 36.6%. This suggests a growing interest from wealth management firms in Bitcoin ETFs.
Notable new holders of Bitcoin ETF shares include financial giants Goldman Sachs and Morgan Stanley, who added $412 million and $188 million worth of shares, respectively. Despite the drop in Bitcoin’s price from $70,700 to $60,300, net inflows into spot Bitcoin ETFs reached $2.4 billion during the quarter.
Coinbase sees the continued inflows into Bitcoin ETFs as a promising indicator of sustained interest in cryptocurrency from new pools of capital. The company expects this growth to continue as more brokerage houses complete their due diligence on Bitcoin ETFs, especially among registered investment advisors.
However, Coinbase also acknowledges that short-term inflows may be affected by seasonal factors and market volatility. The company anticipates that the proportion of investment advisor holdings in Bitcoin ETFs will continue to increase, but large inflows in the short-term may be limited due to summer vacations, thinner liquidity, and choppy price action.
Overall, Coinbase remains optimistic about the future of Bitcoin ETFs and the broader cryptocurrency market, citing the growing institutional interest as a positive trend for the industry.
