Yahya 
New data for Coinbase reveals that while the financial advisers have increased their purchases of spot BTC ETFs in Q2 2024, the hedge funds have reduced their allocations significantly. This pattern suggests that more advisers trust these funds, and if more brokerage firms engage in doing due diligence that taps these funds, these advisers most likely expand their investments even further.
Based on Coinbase’s August 16 report, the second quarter’s ratio of institutional investors designated as “investment advisers” climbed by 3%, currently representing 9% of total institutional investment. This information represents what the US Securities and Exchange Commission (SEC) demands via the 13-F form based on businesses managing more than $100 million in assets.
Coinbase also announced that Morgan Stanley has cleared its 15,000 financial advisors to begin providing spot Bitcoin ETFs to high-net-worth clients, therefore indicating a greater acceptance of these products.
Meanwhile, Coinbase pointed out that the US summer can create delays in significant inflows, therefore preventing financial advisors from immediately attracting new clients. According to the trade, less financial activity is usually seen this period, which fuels irregular price movement. Starting on July 18, the price of Bitcoin dropped by 9.86%; at the time of the post, trading at $59,132.
Conversely, hedge fund managers have reduced their holdings in spot Bitcoin ETFs most likely in reaction to “trading the basis”—that is, leveraging the price variances between spot Bitcoin ETFs and Bitcoin futures contracts. Coinbase announced in the second quarter that Bitcoin futures contracts on the Chicago Mercantile Exchange (CME) increased by 15% and valued $2.75 billion.
Bitcoin underperformance during the quarter notwithstanding, with its price down by 14.6%, the “ETF complex” experienced a net inflow of $2.4 billion from institutional investors, indicating ongoing interest in these products. From the January 11 debut of spot Bitcoin ETFs, Farside figures show that total inflows have been $17.35 billion.
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