Institutional Investors Account for 21% of 2Q BTC Spot ETF Investments

IconCryptoNewsTerminal Staff16 Aug, 2024

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Institutional Investors Account for 21% of 2Q BTC Spot ETF Investments

Institutions showed a stronger interest in investing in Bitcoin spot exchange-traded funds during the second quarter as their participation reached 21.15% of the total assets under management (AUM). This is according to a report by crypto research firm Arcane Research, which revealed that institutions accounted for 21.15% of the total BTC spot ETF AUM in Q2, marking a 2.41% increase from the previous quarter. The report, authored by senior analyst Vetle Lunde, noted that institutional participation in Bitcoin spot ETFs climbed by 27% during the second quarter, with the number of institutions invested in such funds growing to 1,199 by the end of June. This surge in institutional involvement suggests a growing acceptance of Bitcoin as a legitimate investment asset among traditional financial players. As the cryptocurrency market continues to mature and attract more institutional investors, the role of spot ETFs in providing exposure to Bitcoin is expected to become increasingly significant. These funds offer a convenient and regulated way for institutions to gain exposure to the cryptocurrency, without having to deal with the complexities of directly purchasing and storing Bitcoin.

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