Bitwise’s Bitcoin and Ethereum ETFs received significant investment from a large RIA, indicating growing institutional interest in crypto ETFs.
Bitwise, a notable crypto ETF issuer, has seen substantial investment in its Bitcoin and Ethereum ETFs from a major Registered Investment Advisor (RIA).
This reflects a broader trend of increased institutional engagement with crypto ETFs.
Bitwise Bitcoin & Ethereum ETFs Attract RIA Investment
Bitwise CEO Hunter Horsley announced on X that the RIA has invested several million dollars in both the Bitwise Bitcoin ETF (BITB) and the Ethereum ETF (ETHW).
Additionally, the RIA has also included the Bitwise 10 Crypto Index (BITW) ETFs in its client portfolios.
This development coincides with a period of record-breaking inflows into BTC ETFs.
On Friday, August 23, Bitcoin ETF flows reached $252 million, according to Farside UK data, bringing the weekly total to $506.4 million.
This surge reflects strong institutional and retail investor confidence in the crypto market, particularly as Fed rate cuts approach.
Significant contributions to this trend include $86.8 million in BTC ETF inflows reported by BlackRock, $64 million by Fidelity, and $42.3 million by Bitwise.
Other notable inflows came from Ark Invest with $23.8 million, VanEck with $14.4 million, and another BTC ETF with $50.8 million.
In contrast, Grayscale’s Bitcoin Trust (GBTC) saw $35.6 million in outflows.
Ethereum ETF Investment Trends
While Bitcoin ETFs have attracted considerable interest, Ethereum ETFs have faced challenges.
On August 23, ETH ETFs experienced net outflows of $5.7 million, contributing to a weekly total of $44.5 million in outflows. Grayscale’s Ethereum Trust (ETHE) led these outflows with $9.8 million.
However, Bitwise’s ETH ETF still saw a modest inflow of $1.4 million, and VanEck’s ETHV added $2 million, indicating confidence from certain market segments.
Surge in Institutional Adoption of Bitcoin ETFs
The significant inflows into BTC ETFs underscore a broader trend of increasing institutional adoption.
Goldman Sachs, in a recent 13F filing, disclosed holding substantial positions in various Bitcoin ETFs as of June 30, including $238.6 million in iShares Bitcoin Trust, $79.5 million in Fidelity’s FBTC, and $35.1 million in Grayscale BTC.
Similarly, Morgan Stanley reported earlier this month holding 5.5 million shares of BlackRock’s iShares Bitcoin Trust, valued at $190 million, along with investments in Ark 21Shares and Grayscale’s ETFs.
Bitwise’s Chief Investment Officer, Matt Hougan, highlighted this trend in a recent X thread, noting that Bitcoin ETFs have seen the fastest-growing inflows of all time, with $17.5 billion invested since their launch, surpassing the previous record held by Nasdaq-100 QQQs.
Hougan’s analysis challenges the idea that Bitcoin spot ETFs are mainly driven by retail investors, emphasizing that institutional interest is both significant and rapidly expanding.
He also noted that Bitcoin ETFs have attracted three times the number of institutional holders within the first two quarters compared to the QQQs during a similar period.
