A new quarterly 13F report has shown that many of the world’s largest companies are investing significant amounts in Bitcoin ETFs. This development has significant implications for the cryptocurrency industry.

Understanding Form 13F

Form 13F is a quarterly report filed with the SEC by institutional investment managers who manage at least $100 million. These reports offer insights into stock ownership at the end of each quarter. The U.S. regulator requires large investment firms to periodically report their financial transactions and positions. This ensures market transparency, as large volumes of transactions can affect market quotes. If the SEC detects collusion or manipulation, it initiates proceedings.

The report includes:

  • List of securities owned by the fund, arranged alphabetically by issuer name
  • Type of security, such as ordinary or preferred shares, put/call options
  • Number of securities owned
  • Market value at the end of the quarter

The main drawback of this form is that it only reflects the portfolio structure at the end of the reporting period, not short-term transactions within the quarter. Additionally, the SEC cannot verify the accuracy of the information provided.

The Impact on the Crypto Industry

The approval of spot Bitcoin ETFs in January has opened new investment opportunities in Bitcoin, often referred to as “digital gold.” Investors can now monitor Bitcoin’s price movements without owning the cryptocurrency directly. Instead of navigating crypto exchanges and wallets, investors can purchase Bitcoin ETF shares through regular accounts. This has broadened Bitcoin’s acceptance and increased its liquidity, as confirmed by the latest 13F report.

According to the report, 937 large corporate investors have invested in Bitcoin ETFs, compared to only 95 companies investing in gold ETFs as of March 31.

“Retail owns a majority of the float. Professional investors held exposure of $11.06bn by the end of Q1, representing 18.7% of the BTC ETF AUM.”

Millennium is the largest holder of Bitcoin ETF shares, with $1.9 billion on its balance sheet. The State of Wisconsin Investment Board invested $162.7 million in exchange-traded fund securities in the first quarter of 2024.

Morgan Stanley owns $269.9 million in shares of Grayscale’s GBTC exchange-traded fund, making it the third-largest institutional holder of these securities. The financial giant also acquired $2.3 million worth of shares in the ARKB fund from ARK Invest, ranking among the top 20 institutional holders.

JPMorgan Chase owns five spot Bitcoin ETFs, including iShares Bitcoin Trust, Grayscale Bitcoin Trust, ProShares Bitcoin Strategy ETF, Fidelity Wise Origin Bitcoin Fund, and Bitwise Bitcoin ETF, totaling $760,000 in Bitcoin ETFs.

Bitcoin as a Future Asset for Institutional Investors

13F filings only require disclosure of long positions in U.S. stocks and stock options, not short positions. This means the documents provide only a partial view of a company’s overall strategy. However, the fact that nearly ten times more companies are interested in spot Bitcoin ETFs compared to gold suggests a growing institutional interest in Bitcoin.

Institutions invested $3.5 billion in Bitcoin ETFs, accounting for 29% of the total capital inflow. This significant investment indicates Bitcoin’s transformation into a recognized asset class among top investors.

Bitcoin’s rise coincided with an increase in money in spot ETFs and the release of the 13F report. On May 16, the total volume recorded was $5.65 billion, the highest since March 24.

“$IBIT ended up with 414 reported holders in its first 13F season, which is mind-boggling. Even having 20 holders as a newborn is highly rare.”

In the first quarter, 414 institutional investors invested in BlackRock’s IBIT alone. Typically, having 20 such holders is considered a good indicator for a fund’s first quarter.

The publication of the 13F report led to a short-term increase in Bitcoin’s price. However, the long-term trend also appears positive, with evident institutional interest in Bitcoin products, suggesting potential for further capital growth in the Bitcoin ETF sector.

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