The number of funds holding Bitcoin spot ETFs has increased by 701, bringing the total number of hol

According to Bloomberg, hedge funds, retirement funds, and banks continue to invest funds in exchange traded funds (ETFs) that directly invest in Bitcoin (BTC). As the deadline for submitting the second quarter 13F report to the US Securities and Exchange Commission (SEC) on Wednesday (14th) passed, the number of funds reporting holdings of Bitcoin spot ETFs increased by 701, bringing the total number of holders to nearly 1950.

An analysis of the second quarter documents submitted to the SEC shows that the most well-known buyers include hedge funds such as Millennium Management, which has assets under management of $68 billion and holds shares in at least five Bitcoin spot ETFs. Although it significantly reduced its holdings in these ETFs this quarter, it remains one of the main holders of most funds, including BlackRock's iShares Bitcoin Trust (IBIT).

Related report: Hedge fund giant Millennium sells Bitcoin spot ETF! Net holding value drops 45% compared to Q1

Capula Investment Management, Schonfeld Strategic Advisors, and Steven Cohen's Point72 Asset Management also reported holding Bitcoin spot ETFs. The range of other buyers ranges from retirement funds such as the Wisconsin Investment Board (SWIB) in the United States to market makers spanning different regions such as Hong Kong, the Cayman Islands, Canada, and Switzerland.

Related reports: "Europe's fourth largest hedge fund Capula reveals 464 million magnesium Bitcoin ETF holdings", "Wisconsin State Board of Investment 13-F quarterly report: increase holdings in IBIT, clearance of GBTC"

Noelle Acheson, author of the electronic newspaper Crypto Is Macro Now, stated that the increase in the number of holders of Bitcoin ETFs is particularly encouraging given the poor performance of Bitcoin prices in the second quarter and the limited number of financial advisors allowed to recommend them to their clients. She stated that so far, Morgan Stanley is the only large Wirehouse that allows its financial advisors to recommend diversified positions in Bitcoin spot ETFs, but other companies will follow suit, "bringing not only more demand but also a longer-term perspective.

Reason for holding

Institutions holding Bitcoin ETFs may not necessarily be bullish on Bitcoin. Some holders may be buying to profit from cryptocurrency volatility or offset short positions in derivatives, while others may be buying as part of basis trading.

The buyers in the second quarter include hedge fund Hunting Hill Global Capital, which reports holding shares in IBIT. According to Adam Guren, founder and chief investment officer of Hunting Hill, the company has been involved in the cryptocurrency market since 2016.

One of our trading strategies is to provide liquidity within this ETF ecosystem, "he said." Given the current political tailwinds, we expect more products to be launched in the United States, including Bitcoin ETF options, Solana ETFs, and other potential products. This development will create more opportunities for our trading strategy