Coinbase is Reported The firm updated its 13-F filing for Q2 2024 to show a notable increase in institutional inflows into U.S. spot bitcoin ETFs, which it sees as an “encouraging indicator” for the bitcoin market. According to the 13-F filing published on Aug. 14, institutional holdings in these ETFs increased from 21.4% to 24.0% from Q1 to Q2 2024.
Notably, the percentage of ETF shares held by the “investment advisor” category rose from 29.8% to 36.6%, indicating increased interest from asset management firms.Notable new holders included Goldman Sachs and Morgan Stanley, which added $412 million and $188 million worth of shares, respectively.Despite the decline in Bitcoin prices during the quarter, net inflows into Spot Bitcoin ETFs reached $2.4 billion.
“During this period, the ETF complex recorded net inflows of $2.4 billion, while total assets under management for the Spot Bitcoin ETF fell from $59.3 billion to $51.8 billion (as BTC fell from $70,700 to $60,300),” Coinbase reported. “We believe that continued inflows into ETFs amid Bitcoin’s underperformance may be a promising indicator of sustained interest in the cryptocurrency from new pools of capital that ETFs provide access to.”
Coinbase expects this growth to continue as more brokerages, particularly registered investment advisors, complete their due diligence on Bitcoin ETFs, though the report also notes that seasonal factors and current market volatility may limit short-term inflows.
“In our view, investment advisers’ holdings are likely to continue to increase as more brokerages complete their due diligence on these funds,” the report said. “We may not see significant inflows any time soon in the short term as client acquisition may be more difficult during the summer when many people are on vacation and liquidity tends to be low, potentially making price movements more volatile.”“
