Institutional interest in Bitcoin (BTC) continues to grow, with K33 Research analysts reporting a significant increase in professional firms holding investments in U.S. spot Bitcoin exchange-traded funds (ETFs).

The number of such firms surged by 262 in the second quarter of 2024, reaching a total of 1,199.

While retail investors still dominate Bitcoin ownership, institutional investors have notably increased their market presence.

Their share of total assets under management (AUM) rose by 2.41 percentage points, hitting 21.15% in Q2.

Shifts in Institutional Preferences

Vetle Lunde, a senior analyst at K33 Research, noted a shift in institutional preferences within the Bitcoin ETF landscape.

Though the Grayscale Bitcoin Trust (GBTC) has seen a decline in institutional capital, other ETFs, such as Invesco Bitcoin Trust (IBIT) and Fidelity Bitcoin Trust (FBTC), have experienced a significant rise in “professional investor dominance.”

Market makers have emerged as the largest institutional Bitcoin ETF owners. However, notable investors like Millennium and Susquehanna have reduced their exposure, likely due to increased competition from new entrants such as Jane Street and lower trading profits amid calmer market conditions.

The annualized CME premiums closed at 8.6% on June 30, down from 14% on March 31. Despite this, renowned investor Paul Tudor Jones added a $30 million position in IBIT, signaling continued confidence in the market.