Institutional investors have shown a growing interest in Bitcoin exchange-traded funds (ETFs) as the assets under management (AUM) of spot Bitcoin ETFs reached $26.8 billion by the end of 2024, with institutions holding 25.4% of the total AUM. This marks a significant increase from the previous quarter, with a 113% growth in institutional holdings.
According to Vetle Lunde, head of research at K33 Research, the AUM ratio held by institutions increased by 4.1% quarterly, reaching a total of $78.8 billion at the end of the fourth quarter. The number of investors exposed to Bitcoin via ETFs also saw a substantial increase, reaching 1,576 in the last quarter, a 37.4% jump from the previous quarter and a 68.2% increase year-over-year.
BlackRock’s IBIT emerged as a dominant player in the institutional investment space, with institutional interest growing over four times in 2024. Institutions reported $16 billion in IBIT shares by the end of the fourth quarter, a significant increase from less than $4 billion in shares at the beginning of the year. Notable institutional investors like Mubadala Investment Company and the State of Wisconsin Investment Board increased their Bitcoin exposure through IBIT, with investments surpassing hundreds of millions of dollars.
Fidelity’s FBTC also saw considerable growth, nearly doubling its AUM quarterly, although the total institutional holdings are around $5 billion. Bold Report data indicates that BlackRock’s spot Bitcoin ETF leads the market with nearly $56.4 billion in AUM, while the total AUM of all other US-traded spot Bitcoin ETFs combined is $56.9 billion.
In conclusion, institutional investors are increasingly turning to Bitcoin ETFs as a way to gain exposure to the cryptocurrency market. With growing interest from major players like BlackRock and Fidelity, the institutional presence in the Bitcoin ETF space is expected to continue expanding in the coming years.