New Highs in Institutional Interest: Q3 13F Filings Highlight Strong Demand for Spot Bitcoin and Ethereum ETFs

On the night of the U.S. presidential election, November 5th, Bitcoin surged past its previous all-time high from March 2024, reaching approximately $73,500. However, Q3 13F filings, reflecting data as of September 30th, show Bitcoin's price at $63,300—captured before recent highs. Up until that point, Bitcoin entered a consolidation phase, influenced by events such as the Bitcoin halving, the German government’s BTC sale, and broader macroeconomic uncertainties. Despite these headwinds—including a peak-to-trough decline of over 27% in Q3 and a drop to $49,500 following the Japanese Yen carry-trade unwind—Bitcoin demonstrated resilience, closing the quarter near $63,000, only $4,000 below where it began the quarter. This resilience is further echoed in the Q3 13F filings, which reveal strong institutional demand for spot Bitcoin ETFs, even as prices softened.

The launch of spot Ethereum ETFs came at a challenging time—ETH dropped 30% just two weeks after the funds began trading, while early August brought sharp risk-off sentiment driven by unfavorable macro conditions, including the unwinding of the Japanese yen carry trade. Although the spot Ethereum ETFs collectively saw net outflows of approximately $2.1 billion in Q3, this trend has reversed since the election, with cumulative net flows finally turning positive last week with over $175 million in net inflows year to date. Similar to the spot Bitcoin ETF, the Ethereum ETFs have shown an impressive comeback, attracting strong institutional demand and proving popular with investment advisors, as seen in figure 2.

Figure 1: Institutional Investor AUM of BTC ETFs

Data Source: 21Shares, Bloomberg

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Figure 2:  Institutional Investor AUM of ETH ETFs - (ETH ETF AUM / BTC ETF AUM)

Data Source: 21Shares, Bloomberg

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Institutional Momentum Shows No Signs of Slowing…

Institutions strategically accumulated more bitcoin ETF shares during Q3 than they did in Q2, indicating sustained confidence among major institutional investors. The number of institutional holders increased from the 1200s to over 1,300—a significant leap. For context, State Street’s Technology Select Sector SPDR Fund (XLK), the second-largest tech ETF globally with over $75 billion in assets under management and a 26-year track record, has just over 2,000 institutional holders. In just over eight months, spot Bitcoin ETFs have captured more than 65% of the institutional holder base of the world’s second-largest tech ETF.

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Figure 3: Spot Bitcoin ETF Institutional Investor Count

Data Source: 21Shares, Bloomberg

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The spot Ethereum ETFs are not far behind; in less than two months of trading, they've attracted 361 institutional holders. By comparison, one of industry giant BlackRock’s largest tech ETFs—the iShares Expanded Tech Sector ETF (IGM)—has 394 institutional holders despite being on the market for over 23 years. The spot Ethereum ETFs have demonstrated rapid appeal among institutional investors.  

Positioned in the tech or growth sleeve of a portfolio—similar to funds like XLK or VGT—Ethereum provides unique exposure to the expanding blockchain ecosystem and rapidly emerging technology. As investors gain a deeper understanding of Ethereum’s role and its use cases within a portfolio, we could anticipate even greater flows.

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Figure 4: Spot Ethereum ETF Institutional Investor Count - (ETH ETF Holder Count / BTC ETF Holder Count)

Data Source: 21Shares, Bloomberg

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Advisors and Hedge Funds Lead the Charge in Bitcoin ETF Accumulation

Advisor AUM in spot Bitcoin ETFs surged, growing over 78% from $4.4 billion to $7.8 billion—nearly doubling and making advisors the largest group of institutional investors by capital invested. Hedge funds followed closely as the second-largest holders, with almost $7 billion in assets. Although their holder count increased by only 5%, their total AUM nearly doubled, rising by $3.3 billion. This growth reflects strong organic interest, even as Bitcoin prices remained lower than the previous quarter.

Following a similar trend to the spot Bitcoin ETFs, advisors were the largest institutional holders of spot Ethereum ETFs, representing 77% of the institutional holder base and nearly half of the institutional AUM. This trend continues as hedge funds were also the second-largest institutional holders of the spot Ethereum ETFs, accounting for almost 20% of the institutional AUM.

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Wall Street Banking Titans Morgan Stanley, JP Morgan and Goldman Sachs Continue Tapping Into Digital Assets:

Banks such as Morgan Stanley, JP Morgan, and Goldman Sachs have significantly expanded their Bitcoin ETF holdings, effectively doubling their positions QoQ. Their involvement extends beyond just Bitcoin, as they've also started purchasing spot Ethereum ETFs, as shown in their latest 13F filings. Furthermore, these institutions are not merely investing; JP Morgan operates Onyx, a permissioned blockchain network, and Goldman Sachs recently announced plans to launch its own blockchain-based technology platform. This involvement marks a major milestone, solidifying Bitcoin and digital assets as a distinct asset class and paving the way for broader market access.

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State Pension Funds Set Their Sights on Ethereum

The State of Wisconsin Investment Board's Q1 investment in bitcoin ETFs was followed by the State of Michigan Retirement System in Q2, purchasing $6.6 million in bitcoin ETFs. However, they didn’t stop there—the State of Michigan went on to purchase over $13 million in spot Ethereum ETFs in Q3. This move highlights that state pension funds are not only recognizing Bitcoin’s role as a digital store of value but are also valuing Ethereum’s growth potential and the technological advancements in this new, ever-evolving technology sector.

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Endowments and Insurance Companies Have Entered the Chat

Emory University’s endowment, one of the largest in the U.S. with over $10 billion in assets under management, made history by becoming the first college endowment to purchase a spot Bitcoin ETF, investing over $21 million.

Additionally, Northwestern Mutual, one of the largest insurance companies with over $2.3 trillion in life insurance coverage and a broad range of financial services, entered the digital asset ETF market in Q3 with a $22 million investment in a Bitcoin ETF, alongside a position in the Ethereum ETFs

The entry of these new types of institutional investors highlights the growing recognition of digital assets as a significant and maturing asset class within the broader financial landscape.

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Conclusion

Q3 13F filings highlight accelerating institutional demand for Bitcoin ETFs. In just ten months, spot Bitcoin ETFs have collectively amassed over $93 billion in AUM, making them the 14th largest ETF by size. The influx of advisors, hedge funds, insurance companies, and state pension funds signals a transformative shift in the perception of digital assets—from speculative to strategic. As major banks and pension funds enter the space, Bitcoin is moving to the forefront of global finance, fueling further adoption and market maturation.

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