Bitcoin bounced back strongly from its April slump last week, boosting the performance of newly launched Bitcoin spot ETFs.On May 15, the According to CoinShares, the sudden resurgence in Bitcoin demand is directly related to evolving macroeconomic conditions. “The inflows were an immediate response to the lower-than-expected CPI report Butterfill later told Decrypt that the demographics of Bitcoin ETFs investors are especially telling.“What we have seen so far is the most significant allocations being either hedge funds or private equity,” he said. “There are some isolated allocations to large pensions funds, which is very encouraging that less niche funds are buying Bitcoin.”“But so far the allocation highlighted by 13F filings only represent 25% of the total holdings,” he continued, explaining that “it is likely we will get much more detail” by the final filing deadline on July 15. Digital asset investment products experienced net inflows of $931.7m — year-to-date inflows now approach $14bn. The majority of global inflows came from the US, while the EU and Hong Kong saw small outflows.Get more insights in our full report: https://t.co/W4oAl2JPUV pic.twitter.com/dpqphQHrNK— CoinShares (@CoinSharesCo) May 20, 2024Bitcoin price movements have historically correlated with central bank policy expectations, with prices rising as interest rates fall, and vice versa. According to Aside from the changing macro outlook, numerous major U.S. investors disclosed allocations to Bitcoin spot ETFs as part of mandatory 13F filings this month. By the end of Q1, exactly 944 unique filers—each of which controls over $100 million in assets—reported owning $10.7 billion worth of Bitcoin ETF shares. Those holdings make up over 20% of total assets in those ETFs. One such investor included the In a “Hightower Advisors may have $68 million allocated to Bitcoin ETFs today, for instance, which is great, but it’s just 0.05% of their assets,” he noted. If that were to eventually grow to 1%—as is typical of most investors, in Hougan’s view—that would mean a $1.2 billion allocation from Hightower alone. In comments to Decrypt, Butterfill agreed that there is a lot of room for growth, since investment advisors currently dominate the space based on total assets under management—but are not holding much.”The average portfolio size is very low, implying that investors are just dipping their toes into the market, and could well allocate more as their confidence improves,” he said.In other Bitcoin ETF news, Michael Sonnhenshein, CEO of the world’s largest such fund, Grayscale, Edited by Ryan Ozawa. Updated to add comments from CoinShares head of research James Butterfill.
