Coinbase has reported that updated 2Q 2024 13-F filings indicate a notable increase in institutional inflows into U.S. spot Bitcoin ETFs, which the company sees as a “promising indicator” for the Bitcoin market. The 13-F filings, released on August 14, reveal that institutional ownership of these ETFs grew from 21.4% to 24.0% between Q1 and Q2 2024.

Notably, the share of ETF shares held by the “investment advisor” category rose from 29.8% to 36.6%, indicating increased interest from asset managers. Notable new holders include Goldman Sachs and Morgan Stanley, which added $412 million and $188 million worth of shares, respectively. Despite Bitcoin’s price decline in the quarter, net inflows into spot Bitcoin ETFs reached $2.4 billion.

“The ETF complex saw net inflows of $2.4 billion during this period, although total AUM of spot Bitcoin ETFs fell from $59.3 billion to $51.8 billion (as BTC fell from $70,700 to $60,300),” Coinbase reported. “We believe continued ETF inflows during Bitcoin’s underperformance could be a promising indicator of continued interest in crypto from the new pools of capital that ETFs provide access to.”

Coinbase and Bloomberg

Coinbase expects this growth to continue as more brokerage houses complete their due diligence on Bitcoin ETFs, particularly among registered investment advisors. However, the report also notes that short-term inflows could be tempered by seasonal factors and current market volatility.

“We believe it is likely that we will see investment advisors’ share increase as more brokerage firms complete their due diligence on these funds,” the report said. “We may not see large inflows in the short term, as it can be harder to attract clients in the summer when more people are on vacation, liquidity is typically thinner, and price action can be choppy.”