Bitcoin ETF Investment Is Getting Interested From Wall Street

Key Points:

• Major financial institutions are increasingly investing in Bitcoin ETFs following SEC approval.
• Goldman Sachs boosted its crypto holdings, while Morgan Stanley reduced its Bitcoin ETF investments.
• Spot Bitcoin funds grew by $17.5 billion in net inflows, reaching $53.5 billion in assets.

Since the SEC approved Bitcoin ETFs in January, Wall Street has warmed up to cryptocurrency, with traditional financial institutions making very calculated investments. However, money inflow into these funds has not been smooth.

Read more: Bitcoin ETF Holders Resolutely Hold BTC Despite Market Crisis

Wall Street Takes a Shine to Bitcoin ETF Investments as Interest Grows

According to CNBC, interest in Bitcoin ETF investment has picked up on Wall Street. Banks and hedge funds holding over $100 million in assets did disclose their Bitcoin ETF investments through 13F reports, showing major changes in crypto holdings as of the second quarter.

Goldman Sachs Aggressively Enters Crypto ETF Market Between March and June by Scooping Up $418 Million Worth of Bitcoin Funds. Its largest position is a $238 million stake in BlackRock’s iShares Bitcoin Trust. Shares in spot funds were also bought by Goldman from Grayscale, Invesco, and Fidelity.

In contrast, Morgan Stanley, another Bitcoin ETF investor, reduced its crypto exposure. The bank trimmed its spot Bitcoin ETF to $189 million from $270 million by paring holdings in the Grayscale Bitcoin Trust due to its lofty management fees.

Spot Bitcoin Funds Rally to $53.5 Billion in Assets

One of the largest European hedge funds, Capula Investment Management, based in London, has scooped more than $464 million into spot Bitcoin ETFs offered by BlackRock and Fidelity. Others jumping in at the moment include Point72 Asset Management, Elliott Investment Management, Apollo Management, Citadel Advisors, and Fortress Investment Group.

Since the beginning of the year, net inflows into Bitcoin funds have reached $17.5 billion, with total assets in such funds reaching as much as $53.5 billion by mid-August. Meanwhile, after the Grayscale fund bled $19.4 billion following its conversion into an ETF, its budget product continued to see $274 million in net inflows.