Over the past quarter, there has been a significant surge in institutional ownership of Bitcoin ETF assets. Recent data from Bitwise, an asset management firm, indicates that institutions now hold 28% of Bitcoin ETF assets, valuing at $38.7 billion by the end of Q4 2024.
In comparison, institutional holdings in Q3 2024 were considerably lower at $12.4 billion, highlighting a noticeable decline in retail investors’ share of BTC ETFs.
It is projected by Matt Hougan, the Chief Investment Officer at Bitwise, that institutional ownership in BTC ETFs might increase to 40% by the close of 2025.
“The proportion of Bitcoin ETF assets owned by professional investors has risen to 28% from 17% in Q3. This figure is anticipated to exceed 40% by the end of the year.”
Comparing BTC with Gold
Eric Balchunas of Bloomberg ETF supported Hougan’s forecast and drew a parallel between a 40% institutional dominance in Bitcoin ETFs and the market share of gold. He commented,
“The institutional adoption of Bitcoin ETFs *tripled* in Q4 to $38 billion, with 13F filers holding between 25-30% of the assets. For context, gold (GLD) is at 40%, similar to where I believe Bitcoin ETFs will trend.”
The scale of BTC acquisitions by institutional entities alongside the reduction in retail involvement has corroborated the aforementioned predictions. According to data from the crypto exchange River, a total of 893,000 BTC were accumulated by ETFs, funds, and corporations in 2024.
Conversely, an equivalent amount of BTC was divested by governments and individual investors, with individuals selling off 525,000 BTC over the previous year.
Furthermore, statistics from SoSo Value tracking ETF activity revealed that U.S. spot ETF products collectively held $114.44 billion in net assets at the outset of 2025.
The sustained upward trajectory in institutional engagement can be linked to the second wave of BTC ETF adoption, as major financial institutions like Morgan Stanley began endorsing these products to their affluent, risk-tolerant clienteles in August of the preceding year.
However, the implications of continued institutional expansion in Bitcoin ETFs on decentralization concerns are yet to be fully understood.
At the current moment, Bitcoin is valued at $95.6K and has remained range-bound between $90K and $110K.