Key points:

  • Goldman Sachs and Morgan Stanley significantly increased their Bitcoin ETF investments in Q2.
  • Despite the overall increase in interest, some large investors, such as Millennium Management, reduced their Bitcoin ETF positions.
  • The decline in Bitcoin ETF investments was accompanied by a 12% drop in the price of Bitcoin over the quarter.

Regulatory filings released Wednesday show that Goldman Sachs and Morgan Stanley invested a combined $600 million or more in spot bitcoin exchange-traded funds (ETFs) in the second quarter, joining a number of hedge funds and financial advisers that have been actively trading the products since their launch in January 2024.

Institutional investors’ interest in Crypto ETFs increases

According to the 13-F filing, Goldman Sachs has significantly expanded its presence in the cryptocurrency market, investing about $418 million in exchange-traded funds that track the spot price of Bitcoin. The bulk of this investment went to purchasing almost 7 million shares of the iShares Bitcoin Trust. In addition, the investment bank also acquired significant stakes in the Fidelity Wise Origin Bitcoin ETF and the Invesco Galaxy Bitcoin ETF, as well as smaller stakes in other similar funds launched earlier in the year.

Morgan Stanley, in turn, has also shown a noticeable interest in this segment of the market, placing a bet on BlackRock’s iShares Bitcoin Trust. According to the bank’s reporting, its stake in this fund amounted to 5.5 million shares at the end of the second quarter, which is equivalent to about $188 million. In addition, the bank also invested in the Ark 21Shares Bitcoin ETF and the Grayscale Bitcoin Trust.

However, investment volumes in Bitcoin ETFs have declined

Forms 13-F allow us to assess the investment preferences of large institutional players at the end of each quarter. While these reports may not reflect the current situation in real time, they provide valuable insight into emerging market trends.

Recent reports indicate growing institutional interest in Bitcoin ETFs, but according to experts, the bulk of investments in these instruments are still made up of private investors. Investment company Millennium Management has demonstrated mixed dynamics of its investments in Bitcoin ETFs, simultaneously decreasing and increasing its positions in various funds. Overall, the company’s total investment in this market segment has decreased compared to the previous quarter. It’s worth noting that against the backdrop of these events, the value of Bitcoin has decreased by 12%.