The adoption of Bitcoin (BTC-USD) exchange-traded funds (ETFs) by institutional investors saw a significant 27% jump in the second quarter of 2024. According to Vetle Lunde, a senior analyst at K33 Research, over 262 new firms invested in U.S. spot Bitcoin ETFs during this period. By June 30, the total number of professional firms holding these ETFs had risen to 1,199. This surge signals increasing institutional confidence in Bitcoin, even as the cryptocurrency faced recent price corrections.
Retail Investors Still Dominate, But Institutions Are Gaining Ground
Although institutional involvement is on the rise, retail investors remain the primary holders of Bitcoin ETFs. According to Lunde, while institutional investors now account for 21.15% of the total assets under management (AUM), up from 18.7% in the first quarter of 2024, retail investors still hold the majority. This shift indicates a growing institutional footprint but shows that retail investors continue to control the bulk of Bitcoin ETF holdings.
Bitcoin Price Struggles to Break $60,000 Barrier
Despite the boost in institutional ETF adoption, Bitcoin’s price has struggled to break the $60,000 mark. On August 14, Bitcoin fell to $58,370. The cryptocurrency has had difficulty maintaining momentum above this key psychological level. Contributing to the price stagnation, Bitcoin ETF inflows have been lackluster. Data from Farside Investors shows that on August 15, ETF inflows amounted to $11 million, a small rebound after a substantial $81.4 million in outflows recorded the previous day.
What Is the Price of Bitcoin Right Now?
At the time of writing, BTC is priced at $58,687.59, down almost 3% over the past 5 days.
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