Experts Drive Bitcoin Growth in Institutional Q3 Reports – ETF Trends

As the final quarter’s report season looms, a retrospective glance at the previous year’s third quarter 13F filings indicates a continuous upward trajectory in institutional adoption of bitcoin through exchange-traded funds. This data serves as a foundation for forecasting potential outcomes post-Q4 holdings disclosures in the impending months.
Notably, investment advisors emerged as key drivers of this growth, responsible for 57% of all documented institutional bitcoin holdings by the Q3 close, as per a recent report from CoinShares on bitcoin ETF 13F filings. These advisors collectively possessed roughly 185,000 bitcoin-equivalent exposure through ETFs, surpassing the holdings of hedge funds by twofold.
The data showcases a noteworthy 12% rise in professional investors reporting bitcoin exposure quarter over quarter, closely mirroring the overall 13% surge in total U.S. bitcoin ETF assets under management during the same period, as outlined in the report. Correspondingly, bitcoin’s price experienced a 6.4% increase over the same timeframe.
Entities mandated to submit 13F reports oversee assets exceeding $100 million. By the conclusion of Q3, these filers represented 24% of the U.S. bitcoin ETF complex, with average portfolio allocations below 1%, as detailed in the report.
A significant proportion of U.S. bitcoin ETF assets remained concentrated among major issuers, namely Grayscale Investments, BlackRock, and Fidelity Investments, who collectively accounted for 89% of the total holdings, according to the report. The CoinShares Bitcoin ETF (BRRR), which debuted in January 2024 boasting a 0.25% expense ratio, managed to amass $545.3 million in assets, according to ETF Database.
Q3 saw the entry of several prominent institutional players into the bitcoin arena. Noteworthy mentions include Al Warda from the United Arab Emirates disclosing ownership for the first time with 4,521 bitcoin-equivalent or $515.6 million. The Abu Dhabi Investment Council expressed a perspective to Bloomberg likening bitcoin to a store of value akin to gold.
Harvard Management Company augmented its exposure by 257% to 3,868 bitcoin-equivalent, clocking in at $441.2 million. Emory University also bolstered its position by 91% to 456 bitcoin-equivalent or $52.1 million.
Established financial institutions continued to fortify their positions during the quarter. Wells Fargo & Company disclosed $491 million in exposure, Morgan Stanley reported $724 million, and JPMorgan Chase & Co. indicated $346 million, according to the report.
The quarterly 13F filings afford insights into how professional fund managers allocate bitcoin holdings through ETFs. The report indicates that despite average portfolio allocations remaining below 1%, there exists room for further institutional expansion in positions. As Q4 filing deadlines approach in mid-February, the Q3 dataset establishes a benchmark for monitoring whether institutional adoption of bitcoin accelerated or decelerated into the year’s end. For the latest news, insights, and strategies on crypto ETFs, visit the CoinShares Crypto ETF Hub.