In the second quarter, major institutional investors and prominent Wall Street firms increased their holdings in spot Bitcoin exchange-traded funds (ETFs), signaling growing interest from traditional finance in digital assets.
Wall Street Embraces Bitcoin ETFs Goldman Sachs caught attention by reporting over $400 million in holdings across seven of the 11 U.S. spot Bitcoin ETFs, according to its 13-F filing. Morgan Stanley also expanded its exposure to Bitcoin ETFs, adding new positions worth roughly $189 million, primarily in BlackRock’s iShares Bitcoin Trust ETF (IBIT).
Additionally, Wells Fargo broadened its exposure to include ETFs like the Fidelity Wise Origin fund (FBTC) and Invesco Galaxy Bitcoin ETF (BTCO), moving beyond its previous reliance on the Grayscale Bitcoin Trust (GBTC).
JPMorgan, however, scaled back its Bitcoin ETF holdings to minimal exposure in GBTC, following its previous role as a market maker for at least three other Bitcoin ETFs in the first quarter.
Hedge Funds Join the ETF Surge Renaissance Technologies, a quant-focused hedge fund, more than doubled its Bitcoin ETF positions in the second quarter. It increased its holdings in Bitwise Bitcoin ETF and added new positions in ETFs from Franklin, iShares, and VanEck, while trimming stakes in ARK and Invesco funds.
BlackRock’s IBIT Takes the Lead BlackRock’s iShares Bitcoin Trust ETF (IBIT) emerged as the top choice for institutional investors. Goldman Sachs allocated $238 million—more than half of its total Bitcoin ETF exposure—to IBIT. Similarly, Morgan Stanley directed the majority of its Bitcoin ETF holdings to IBIT. Capula Management, a London-based hedge fund, also disclosed over $400 million in combined investments in IBIT and Fidelity’s Bitcoin ETF.
The State of Wisconsin Investment Board (SWIB) increased its IBIT holdings to nearly 2.9 million shares, up from 2.45 million in the previous quarter, while exiting its position in Grayscale’s Bitcoin fund.
This surge in institutional interest underscores the increasing mainstream acceptance of Bitcoin ETFs in traditional finance.