Hi! I am Uncle Bird🦜. Recently, according to regulatory documents filed on Wednesday, Goldman Sachs and Morgan Stanley significantly increased their investments in spot Bitcoin exchange-traded funds (ETFs) in the second quarter of 2024. Total The investment of more than US$600 million further demonstrates the interest and confidence of mainstream financial institutions in Bitcoin and its derivatives. $BTC #ETFvsBTC
In its quarterly report submitted to the U.S. Securities and Exchange Commission (SEC), Goldman Sachs revealed that the company has invested approximately $418 million in purchasing multiple ETFs that are closely linked to the spot price of Bitcoin, including popular products such as iShares Bitcoin Trust (IBIT.O), Fidelity Wise Origin Bitcoin ETF and Invesco Galaxy Bitcoin ETF (BTCO.Z). In particular, Goldman Sachs holds nearly 7 million shares of iShares Bitcoin Trust, which is worth approximately $238 million at the end of this quarter, showing its favor for the ETF.
Morgan Stanley was also not far behind, with its investment in BlackRock's iShares Bitcoin ETF reaching 5.5 million shares in the second quarter, worth about $188 million. In addition, the bank also slightly increased its holdings in Ark 21Shares Bitcoin ETF (ARKB.Z) and Grayscale Bitcoin Trust (GBTC.P), further broadening its Bitcoin ETF portfolio.
It is worth noting that despite the growing interest of institutional investors in Bitcoin ETFs, ETF issuers and market analysts point out that individual investors still dominate the investor base of these products. However, the large investments of Goldman Sachs and Morgan Stanley have undoubtedly set a benchmark for the influx of institutional funds into this field.
Some hedge funds that invested in Bitcoin ETFs early on adjusted their holdings in the second quarter. For example, Hunting Hill Global Capital cut its holdings in Grayscale and Fidelity ETFs, but increased its holdings in Bitwise Bitcoin ETF (BITB.P) and BlackRock's ETFs, showing its flexible and changeable investment strategy. Adam Guren, founder and CEO of Hunting Hill, said that as an active trader of Bitcoin products, the company will flexibly adjust its holdings according to market conditions.
Another New York hedge fund, Millennium Management LLC, also adjusted its Bitcoin ETF holdings this quarter. Although it cut some ETF positions, it kept its Ark 21Shares ETF holdings unchanged and significantly increased its holdings in Bitwise products. As of the end of the second quarter, the fund's total investment in Bitcoin ETFs was approximately $1.15 billion, a decrease from the end of the first quarter, but still maintained a large investment scale.
Although the price of Bitcoin has fallen by 12% this quarter, the increased investment from mainstream financial institutions such as Goldman Sachs and Morgan Stanley has undoubtedly given the market a shot in the arm. With the influx of more institutional funds, the Bitcoin ETF market is expected to usher in a broader space for development, and will also promote the cryptocurrency industry to develop in a more mature and standardized direction.
