According to a report by Bitwise, the number of institutional investors holding spot Bitcoin ETFs grew by 14% in the second quarter of 2024. This growth indicates a rising interest from major players in cryptocurrency assets despite volatile market conditions.
Additionally, their share of total assets under management (AUM) also increased from 18.74% to 21.15%. Bitwise noted that by the end of the second quarter, institutional investors held ETFs worth $11 billion, showcasing their confidence in Bitcoin’s long-term potential.
Matt Hougan, Chief Investment Officer at Bitwise, emphasized that if institutions are buying Bitcoin during times of price volatility, it’s a strong indicator of future growth in cryptocurrency interest. “Imagine what could happen in a bull market,” he added, pointing to the possibility of significant increases in institutional investments if market conditions become more favorable.
With the rise in institutional investments in Bitcoin, we can expect a greater influence of major players on the market, which could further legitimize and popularize cryptocurrencies among a broader range of investors.
