Bitcoin exchange-traded products (ETPs) attract more institutional investors

By Matt Mena 

The demand for Bitcoin exchange-traded products (ETPs) is surging, with a growing number of institutional players joining the market. The latest 13F filings, the quarterly disclosures submitted to the SEC by large institutional investors, show an increasing number of investment advisors, insurance companies, and other firms adding Bitcoin ETPs to their portfolios. 

This surge signals not just heightened interest, but a deepening conviction in Bitcoin as a long-term, strategic asset. As Bitcoin continues to gain credibility in traditional finance, ETPs are becoming the preferred entry point for institutions seeking exposure to the world’s leading digital currency.

As per the recent 13F filings, the number of institutional holders climbed from 1,694 in Q4 2024 to 1,775 in Q1 2025, a 5% rise that signals sustained long-term confidence in Bitcoin’s potential.

To put this into perspective: In less than a year, Bitcoin ETPs have already achieved nearly 70% of the institutional holder base of SPDR Gold Shares (GLD), the world’s largest gold and commodity ETF, which has 2,565 institutional holders despite its over 20-year track record and $97 billion in assets under management (AUM). 

Data Source: 21Shares, Bloomberg

More institutions are doubling down on Bitcoin ETPs

According to the latest 13F filings, investment advisors were key drivers of Bitcoin ETP growth, increasing their participation by 6.64%, from 1,340 holders in Q4 2024 to 1,429 in Q1 2025. Insurance companies also saw a notable surge, doubling their number of holders over the same period. Meanwhile, university endowments continued to enter the crypto space, with Brown University becoming the first Ivy League institution to allocate funds to Bitcoin ETPs.

This level of adoption underscores the rapid pace at which Bitcoin is being integrated into traditional investment portfolios, further solidifying its position as a core component of the digital store-of-value narrative.

Wall Street’s Bitcoin bet: A closer look at institutional momentum

Goldman Sachs has emerged as the single largest traditional financial institutional investor in Bitcoin ETPs, increasing its allocation by $500 million in Q1 2025 to surpass $2.1 billion in total holdings. While the scale of the position signals growing acceptance of Bitcoin among the most established players in traditional finance, it’s likely driven more by client demand or basis trading strategies. 

Meanwhile, Brevan Howard, one of the world’s most prominent hedge funds with $35 billion in AUM, maintained its over $1 billion position in Bitcoin ETPs despite a decline in the basis trading yield. This indicates that the fund’s allocation goes beyond short-term opportunity or arbitrage, but rather reflects growing conviction in Bitcoin as a long-term macro asset. Taken together, these developments show that leading institutions are increasingly using Bitcoin ETPs for strategic exposure, not just as a trading instrument but as a core component of portfolio allocation.

Institutions are betting on Ethereum, too

Despite Ethereum’s more muted price performance relative to Bitcoin, institutional interest in Ethereum ETPs has remained resilient. Investment advisors drove the expansion of Ethereum ETPs, with the number of holders rising 38%, from 261 in Q3 2024 to 357 in Q1 2025.

Moreover, since 13F filings began tracking these products in Q3 2024, institutional holdings have grown by approximately $450 million, rising from $1.17 billion in Q3 2024 to over $1.62 billion in Q1 2025. Hedge funds have led the charge, nearly doubling their exposure from $212 million in Q3 2024 to more than $406 million in Q1 2025, while private equity firms increased their allocations by a staggering 650% over the same period.

This continued growth highlights Ethereum’s staying power among institutional allocators and reinforces its evolving role as an essential part of diversified digital asset portfolios.

Data Source: 21Shares, Bloomberg

Conclusion

The latest 13F filings show a powerful trend: institutional adoption of Bitcoin and Ethereum ETPs is accelerating rapidly, cementing digital assets as a foundational element in today’s investment landscape. 

Bitcoin ETPs have attracted over $8 billion in inflows this year alone, outpacing gold and even the combined net flows of all sector ETFs. Ethereum ETPs are gaining traction as well, with a notable uptick in institutional exposure. This momentum indicates that digital assets are no longer merely speculative sidelines; they are now regarded as long-term, strategic components of institutional portfolios.