Who is Buying Bitcoin? A 2024 Breakdown of ETF and Institutional Investors

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The landscape of Bitcoin ownership has diversified significantly since its inception. What began as an asset held primarily by crypto enthusiasts has evolved to include publicly traded companies, private corporations, and even government entities. A pivotal moment in this evolution was the January 2024 approval of spot Bitcoin ETFs in the United States, providing a regulated and accessible vehicle for investment. This instantly made ETFs the largest collective holders of Bitcoin.

As of October 8, 2024, global Bitcoin ETFs held over 1.1 million BTC (approximately $68.726 billion), representing 5.26% of the total supply. U.S.-based Bitcoin ETFs alone held roughly 928,000 BTC (about $57.793 billion), accounting for 84.13% of the global BTC ETF total.

To understand who is buying these ETFs, we turn to the SEC's 13F filings, which provide a quarterly snapshot of holdings from institutional investment managers with over $100 million in assets under management (AUM). The analysis of these filings reveals three key conclusions:

  1. A wide variety of professional institutions hold Bitcoin ETFs, including hedge funds, investment advisors, quantitative trading firms, banks, and even state government investment boards.
  2. Bitcoin ETFs have attracted an unprecedented level of interest from professional investors. When compared to the ten fastest-growing new ETFs in history, Bitcoin ETFs far surpassed them in both the number of holders and assets under management (AUM) just two quarters after launch.
  3. A significant majority—76.8%—of spot Bitcoin ETF holdings are attributed to non-filers (e.g., smaller institutions or retail investors). This is a markedly higher proportion than seen in major equities or other popular ETFs.

While the majority of investment in Q1 and Q2 2024 came from these non-filers, professional institutional participation is likely increasing. Many professional investors follow a pattern of personal allocation and due diligence before making larger investments on behalf of their clients.

Understanding the 13F Filing

The SEC's Form 13F is a quarterly report mandated for institutional investment managers with over $100 million in AUM. It requires disclosure of their holdings of U.S. equities, including ETFs and convertible bonds. Filed within 45 days after each quarter ends, the 13F's primary purpose is to provide market transparency, allowing investors and regulators to see what large money managers are buying and selling.

A Snapshot of 13F Data

2024 Q1 13F Data
The first wave of 13F filings for 2024 revealed that 1,015 professional institutions held approximately $11.72 billion in spot Bitcoin ETFs. This represented about 23.2% of the total U.S. Bitcoin ETF market (including GBTC) at the time, meaning the remaining 76.8% of holders were non-filers (e.g., smaller firms or retail investors). Among the filing institutions:

For a large portion of these institutions, their Bitcoin ETF allocation constituted only a small fraction of their total AUM.

2024 Q2 13F Data
Despite Bitcoin's price declining by roughly 12% in the second quarter, institutional buying continued. Data from Bitwise showed that 1,100 institutions reported holdings worth $11 billion. Although the total dollar value decreased from Q1's $11.73 billion, this actually represented a net increase in the number of coins held due to the price drop. The number of reporting institutions grew by 8.37% from Q1.

Notably, nearly one-sixth of all 13F filers (out of 6,794 total firms managing a collective $48.66 trillion) held a spot Bitcoin ETF by the end of Q2.

Types of Investors Revealed in 13Fs

The diversity of Bitcoin ETF holders is striking. They include:

This high non-filer percentage indicates that while professional interest is growing rapidly, widespread institutional adoption for client portfolios is still in its early phases. Many professionals are likely conducting personal due diligence with smaller allocations first.

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Key Institutional Holders and Their Q2 Movements

The 13F filings for Q1 and Q2 of 2024 listed hundreds of institutions. The following is a breakdown of key holder categories and notable changes in their reported holdings, which were influenced by both market price movements and active trading decisions.

Hedge Funds: A Major Force

Hedge funds were the largest category of holders in Q1, with 107 funds reporting $4.7 billion in spot Bitcoin ETF holdings. It's important to note that these positions may be used for hedging or arbitrage strategies rather than purely long-term investment. By Q2, they were the second-largest group after investment advisors.

Financial Services and Wealth Management

This is the most diverse group of holders, encompassing investment advisors (RIAs), wealth managers, and investment banks. According to analysis, 13 of the 25 largest RIAs had some exposure to Bitcoin, often starting with small allocations.

Government Pensions and Banks

Perhaps the most surprising entrants were state government investment boards, signaling a new level of mainstream acceptance.

Banks, while present, currently have minimal exposure relative to their vast AUM, suggesting significant potential for future growth. Firms like Bank of America, U.S. Bancorp, and Wells Fargo reported holdings in the millions of dollars. Some, like J.P. Morgan and BNP Paribas, reported small positions in Q1 but had sold them by Q2.

Other Holders: Market Makers and Private Banks

Global Bitcoin Holdings: Beyond ETFs

The investment flow is not limited to ETFs. Corporations, governments, and private companies hold Bitcoin directly on their balance sheets.

As of October 8, 2024:

The value of public company holdings has seen tremendous growth, increasing nearly 214% from $7.2 billion a year prior.

Frequently Asked Questions (FAQ)

What is a 13F filing?
A 13F is a quarterly report filed with the U.S. SEC by institutional investment managers that control over $100 million in assets. It provides a snapshot of their long-term holdings in U.S. equities, including ETFs, which allows the public to see what large funds are buying and selling.

Who are the biggest holders of Bitcoin ETFs?
The biggest holders are a mix of large hedge funds (like Millennium Management and Capula), investment advisors, and quantitative trading firms (like Susquehanna and Jane Street). As of Q2 2024, investment advisors as a group held the largest share.

Is most Bitcoin ETF investment coming from institutions or retail?
Based on 13F data, only about 23.2% of the U.S. Bitcoin ETF market is held by institutions required to file 13Fs. The remaining 76.8% is held by "non-filers," which includes retail investors and institutions below the $100 million AUM reporting threshold. This indicates strong retail participation, though institutional interest is growing quickly.

Why are state pensions investing in Bitcoin?
State pension funds, like Wisconsin's, are tasked with generating returns to meet future obligations. Their investment in Bitcoin ETFs suggests a growing acceptance of Bitcoin as a legitimate, though likely small, part of a diversified portfolio for potential long-term growth and inflation hedging.

How can I check if a specific company owns a Bitcoin ETF?
You can search the SEC's EDGAR database. Use the search term "Bitcoin," filter by form type "13F-HR," and specify the company name and date range (e.g., 2024-01-01 to 2024-09-01) to find their quarterly reports.

What's the difference between holding Bitcoin directly and through an ETF?
Holding a Bitcoin ETF means you own shares of a fund that holds Bitcoin, not Bitcoin itself. This offers advantages like ease of trading in a brokerage account, regulatory oversight, and no need for personal crypto wallet security. The main drawbacks are management fees and the fact that you don't have direct control over the underlying asset.

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