It has been reported that overseas financial institutions are increasing investments in Bitcoin spot exchange-traded funds (ETFs).
According to Shinyoung Securities on the 19th, the number of financial institutions subject to 13F (reporting major stock holdings to the U.S. Securities and Exchange Commission) that held Bitcoin spot ETFs in the fourth quarter of last year increased by 37% compared to the previous quarter to 1,576.
Research Institute Min-ho Lim noted, "The adoption of Bitcoin by financial institutions has expanded further," adding, "Among financial institutions, hedge funds (12%), registered investment advisors (RIA) (9.9%), and brokers (4.1%) have a high proportion."
The Bitcoin purchased by financial institutions subject to the 13F disclosure is estimated to be 315,500 units. Research Institute Lim stated, "The Bitcoin market showed high volatility in the fourth quarter," and assessed, "Major hedge funds such as Symmetry Investment LP, Point72, and Barclay Hedge Fund newly entered in the fourth quarter, indicating that institutional investments in Bitcoin are continuously expanding."
Pension funds and sovereign wealth funds have also jumped on this trend. The Wisconsin Investment Commission purchased an additional 3,171,100 shares of BlackRock's iShares Bitcoin Trust (IBIT). Research Institute Lim emphasized, "Abu Dhabi sovereign wealth fund Mubadala secured a new position in IBIT," noting, "The fact that the Abu Dhabi sovereign wealth fund is investing in Bitcoin based on revenue generated from energy resources is a noteworthy move."
This is linked to discussions about a national-level Bitcoin accumulation strategy being considered in the United States and suggests that discussions about expanding Bitcoin investments by national institutions in the global market may accelerate. However, investments in Ethereum appear to be less active. Research Institute Lim explained, "The proportion of institutional investors holding Ethereum spot ETFs increased from 4.8% in the third quarter of last year to 14.5% in the fourth quarter, but the investment scale remains limited compared to Bitcoin."
With the inauguration of U.S. President Donald Trump, who is friendly to virtual assets, investments in virtual assets by financial institutions are expected to become more active. Key tasks announced by Hester Peirce, chairperson of the U.S. Securities and Exchange Commission's virtual assets task force (TF), include improving legal uncertainties regarding virtual assets, adjusting the powers related to virtual assets for financial institutions, and enhancing the connectivity between blockchain and the financial system. This focuses on easing regulations that inhibit financial institutions' entry into the virtual asset business.
Research Institute Lim anticipates that "institutional financial services, such as virtual asset custody and prime brokerage services for institutions, will be activated." However, he noted that investments by financial institutions in virtual assets are still in the early stages. Research Institute Lim added, "The adoption of Bitcoin by financial institutions centered on ETFs will gradually expand," stating, "It is necessary to continuously monitor the adoption of virtual assets by major hedge funds, large advisory firms, pension funds, and sovereign wealth funds through 13F disclosures."