**News Flash: Investment Advisors Increase Bitcoin ETF Stakes Amid Hedge Fund Decline**

Investment advisors are upping their investments in spot Bitcoin ETFs, while hedge fund holdings have dipped slightly, reports Coinbase. In Q2 2024, the proportion of institutional investors identified as "investment advisors" rose by 3%, now making up 9% of total institutional investments. This trend is expected to continue as more brokerage firms complete their due diligence.

Morgan Stanley has also authorized its 15,000 financial advisers to recommend spot Bitcoin ETFs to high-net-worth clients. However, large inflows might be delayed due to the summer vacation period in the US, potentially leading to choppy price action.

Meanwhile, hedge funds are likely reducing their holdings to exploit price differences between spot Bitcoin ETFs and Bitcoin futures contracts. CME Bitcoin futures contracts grew by 15% in Q2, reaching $2.75 billion.

Despite Bitcoin's price falling 14.6% in Q2, institutional investors poured $2.4 billion into ETFs, signaling positive sentiment despite the asset's underperformance.