Despite Bitcoin’s muted performance in recent months, 13-F filings for spot exchange-traded funds (ETFs) paint a bullish picture for BTC’s price. Bitwise’s Chief Investment Officer (CIO), Matt Hougan, has common a summary of the three most fascinating takeaways from the Q2 papers via X. Its findings underscore the growing and sustained institutional interest in Bitcoin, pointing to a bullish outlook.

#1 Increased institutional adoption of Bitcoin

Hougan highlights the impressive growth in institutional exposure to Bitcoin ETFs in the second quarter of the year. He said, “I count 1,924 pairs of ETF holders across all 10 ETFs, up from 1,479 in Q1. That’s a 30% increase; not bad considering the price decline in Q2.” The data suggests that institutional investors are increasingly viewing Bitcoin as a viable asset class, even in the face of price declines, indicating long-term commitment rather than speculative short-term plays.

Hougan concludes: “Of course, this doesn’t mean that 1,924 institutions hold Bitcoin ETFs; some investors report positions in multiple ETFs. But this ‘double-counting’ aspect is equally true in both the Q1 and Q2 numbers, so the percentage increase is still telling. My takeaway: institutional investors continued to embrace Bitcoin ETFs in Q2. The trend is intact.”

#2 Institutional Investors Are HODLers

The holding patterns in these filings reveal that a significant portion of institutional investors remained committed to their Bitcoin ETF holdings, reflecting a resilient stance amid market volatility. “Among Q1 filers, 44% increased their Bitcoin ETF position in Q2, 22% maintained their position, 21% reduced their position, and 13% withdrew,” Hougan said.

These numbers are particularly telling because they show that more than two-thirds of institutions have maintained or increased their exposure to Bitcoin ETFs during the period of significant price volatility. Hougan interprets the data as a sign that institutional investors have “diamond hands,” a colloquial term used in the community to describe holders who refuse to sell their holdings despite market pressure or declines.

Hougan added: “If you think institutional investors are going to panic at the first sign of volatility, the data suggests otherwise. It’s pretty stable.”

#3 Broad investor base

Hougan’s analysis also highlights the diversity of investors participating in Bitcoin ETFs. Major hedge funds like Millennium, Schonfeld, Boothbay, and Capula are prominent among the largest holders. However, the presence of advisors, family offices, and other institutional investors like the state of Wisconsin is particularly notable.

“ETFs are a big tent that attracts a wide range of investors. It’s pretty cool to see Millennium squeezed into the Wisconsin state framework in these ETF filings. Over time, I’d like to see wealth managers and pension funds account for a growing share,” Hougan noted.

Yesterday it was became publicly that the Wisconsin Pension Fund has increased its holdings in a Bitcoin ETF. In SEC filings, the State of Wisconsin Investment Board reported owning 2,898,051 shares of the iShares Bitcoin Trust as of June 30 (worth $98.9 million at that date). That’s up from the 2,450,400 shares Wisconsin reported earlier in May.

At the time of going to press, the BTC price was $58,035.

Featured image created with DALL.E, chart from TradingView.com