The first quarter of 2024 has seen an explosion of institutional investment in spot Bitcoin exchange-traded funds (ETFs), with total assets surging past $50 billion. Leading the charge are major financial firms like Susquehanna International Group and Hightower Advisors, who have collectively poured nearly $2 billion into various Bitcoin ETF offerings.
In a recent SEC filing, quantitative trading giant Susquehanna disclosed Bitcoin ETF holdings exceeding $1.3 billion, spread across nine different funds. The largest chunk, over $1 billion, is invested in Grayscale’s Bitcoin Trust (GBTC). Susquehanna also holds sizable positions in ETFs from Fidelity, BlackRock, Bitwise, Ark 21Shares, VanEck, WisdomTree, Invesco, and Valkyrie.
Asset manager Hightower, which oversees $130 billion, revealed its own $68 million Bitcoin ETF investment. The firm allocated funds to GBTC, as well as offerings from Fidelity, BlackRock, ARK, Bitwise, and Franklin Templeton. This diverse approach reflects growing confidence in Bitcoin across multiple ETF providers.
The flurry of institutional buying comes on the heels of spot Bitcoin ETFs launching in the U.S. in January, following long-awaited SEC approval. Since then, Bitcoin has hit new all-time highs as investors eagerly embrace regulated vehicles for crypto exposure. As of early May, spot Bitcoin ETFs have attracted $11.7 billion in inflows.
This trend isn’t isolated to Susquehanna. Other major financial players like Hightower and BlackRock have also made substantial investments in Bitcoin ETFs, with the sector witnessing unprecedented growth since the start of 2024. Since the SEC’s approval of these funds, Bitcoin’s presence in the stock market has notably increased, attracting both seasoned investors and new entrants looking to tap into the potential of digital currencies.
Industry experts see the trend accelerating and institutional adoption of Bitcoin is clearly hitting an inflection point. With more financial heavyweights likely to disclose Bitcoin ETF purchases in the coming weeks, the cryptocurrency’s journey into the mainstream appears to be kicking into high gear.
