Bitcoin ETFs Gain Market Share in Q4

Bitcoin ETFs continued to gain market share in the fourth quarter, while Ethereum ETFs saw significant growth among institutions, according to the latest 13F filings.

Every quarter, institutional investment managers with at least $100 million in equity assets under management file 13F reports with the U.S. Securities and Exchange Commission (SEC). These filings, required within 45 days of the end of each quarter (in this case, due on Feb. 14), provide a view of the manager’s stock holdings. 13Fs offer insights into how the largest portfolios and influential money managers are navigating the market, although they do not disclose short positions.

Changes in Holdings

Here’s a brief look at how some prominent funds adjusted their holdings from Q3 to Q4 2024, as of Dec. 31:

• BlackRock’s iShares Bitcoin Trust stays at the forefront, with approximately 1,100 institutions holding 247 million shares.
• Goldman Sachs boosted its holdings by 88% quarter-over-quarter, acquiring 24.07 million shares, and remains the third-largest holder of IBIT, behind Brevan Howard Capital (25 million) and Millennium Management (29 million). Their total Bitcoin ETF holdings reached $1.5 billion this quarter.
• Barclays entered the scene with a new stake in IBIT, holding 2.47 million shares valued at $131 million.
• Notably, Abu Dhabi’s sovereign wealth fund purchased $436.9 million of BlackRock’s spot Bitcoin ETF during the quarter, establishing itself as the seventh-largest holder. The Wisconsin State Pension Fund also more than doubled its stake to 6.06 million shares worth $321.5 million.

Juan Leon, senior investment strategist at Bitwise, stated, “This illustrates the next phase of institutional accumulation: major institutions like sovereign wealth funds and pension funds beginning to invest.” He emphasized that this trend is just getting started.

Ethereum ETFs See Increased Buying

Bitcoin ETFs debuted in January 2024, making them eligible for first quarter holdings, while Ethereum ETFs began trading in July 2024, eligible for third quarter reporting.

Institutional ownership of Ethereum ETFs surged, as Bitcoin ETFs remained relatively stable. Overall ETH ETF ownership jumped from 4.8% to 14.5%, while BTC ETFs decreased slightly from 22.3% to 21.5%. Leon highlighted this trend as a positive indicator for institutional interest in ETH.

In terms of institutional versus retail ownership, Bitcoin ETFs lead among institutions with a 21% allocation for BTC compared to 15% for ETH. This reflects a similar pattern seen in early 2024 with BTC ETFs, where initial retail interest was followed by larger institutional investment.

Goldman Sachs has established a new position in BlackRock’s iShares Ethereum Trust ETF, acquiring 9.3 million shares worth $195 million, making it ETHA’s largest institutional shareholder. Millennium Management holds 4.1 million shares worth $182.1 million across all Ethereum ETFs, while Brevan Howard Capital owns 3.6 million ETHA shares.

BlackRock’s IBIT ($56.3 billion AUM) and ETHA ($3.6 billion) are the largest Bitcoin and Ethereum ETFs by assets under management according to The Block’s ETF data dashboard.

Updated at 7:40 p.m. ET to include additional details on Brevan Howard Capital.