Record-Breaking Institutional Demand: Q4 13F Filings Highlight Bitcoin and Ethereum ETP Boom

As President Trump took office, Bitcoin soared to a new all-time high of $108,786, surpassing its previous peak of $108,400 set on December 17th. However, Q4 13F filings, reflecting data as of December 31st, show Bitcoin closing the quarter at $93,354—capturing prices before the latest surge. Bitcoin’s rally was fueled by a shift in the new administration’s stance on digital assets and accelerating institutional adoption, leading to significant inflows into spot Bitcoin ETPs. As figure 1 shows, institutional holdings in Bitcoin ETPs surged 47.6% quarter-over-quarter, rising from $19.2 billion in Q3 to $28.3 billion in Q4, driven by strong inflows from hedge funds (+$5.3B), investment advisors (+$2.6B), and pension funds (+$175M). Notably, government entities emerged as new entrants with $455.7 million in holdings, while venture capital and unclassified investors saw exponential growth of 705.3% and 774%, respectively, signaling broader market participation. The data also highlighted the emergence of nation-states as Bitcoin investors, a trend mirrored in the U.S., where momentum is growing toward establishing a strategic Bitcoin reserve and a digital asset stockpile at both the state and federal levels. This momentum propelled Bitcoin to a 58% gain for the quarter, climbing from its ~$59,000 Q4 open, reinforcing sustained investor confidence and solidifying Bitcoin ETPs as a key portfolio component amid shifting regulatory and market dynamics.

Figure 1: Institutional Investor AUM of BTC ETPs

Source: 21Shares, Bloomberg

Additionally, Ethereum ETPs saw significant growth among institutions, signaling that the second-largest digital asset by market cap is also gaining traction among institutional investors. Institutional holdings in spot Ethereum ETPs nearly doubled in Q4, surging 96.8% from $1.17 billion to $2.3 billion, as hedge funds (+$504.6M), market makers (+$331.5M), and investment advisors (+$289.1M) led the inflows, as seen in figure 2. Hedge fund allocations jumped 237.8%, while market makers saw an even steeper increase of 370.6%, highlighting growing institutional confidence in Ethereum as an investable asset. Despite minor declines in pension funds, the overall trend underscores Ethereum’s strengthening foothold among institutional investors, further validating its role alongside Bitcoin ETPs in diversified portfolios.

Figure 2:  Institutional Investor AUM of ETH ETPs

Source: 21Shares, Bloomberg

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No Slowdown in Sight: Institutions Keep Pouring into Bitcoin ETPs

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Institutions continued to ramp up their accumulation of spot Bitcoin ETPs, with the number of institutional holders rising from 1,332 in Q3 to 1,694 in Q4—a 27.2% increase in just one quarter. 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 first and largest gold and commodity ETF, which has 2,451 institutional holders despite its over 20-year track record and $81 billion in assets under management. Investment advisors played a major role in this expansion, increasing their participation by 27.6% to 1,340 holders, while hedge funds saw a notable 31.5% jump to 188 holders. Achieving this level of adoption in under a year highlights the unprecedented pace at which Bitcoin is integrating into traditional portfolios, reinforcing its role as a core allocation in the digital store-of-value narrative.

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Figure 3: Spot Bitcoin ETP Institutional Investor Count

Data Source: 21Shares, Bloomberg

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The spot Ethereum ETPs are rapidly gaining traction, with institutional holders rising from 361 in Q3 to 538 in Q4—a 49% increase in just one quarter. For comparison, the Fidelity MSCI Information Technology Index ETF (FTEC), the world’s fifth-largest tech ETF, has 511 institutional holders despite being on the market for over 11 years. In less than six months, Ethereum ETPs have already surpassed FTEC’s institutional holder base, highlighting the unprecedented pace at which Ethereum is being integrated into institutional portfolios. Investment advisors led the expansion, growing 48.2% from 278 to 412 holders, while hedge funds rose 64.7% to 56 holders, and banks increased 61.1% to 29 holders. Similar to QQQ or XLK in the tech sector, Ethereum is positioning itself as a key portfolio component, offering exposure to the expanding blockchain ecosystem and digital infrastructure. As a high-growth asset powered by smart contracts and decentralized applications, Ethereum’s accelerating institutional adoption suggests further inflows ahead, solidifying its role alongside Bitcoin as an institutional-grade asset.

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Figure 4: Spot Ethereum ETP Institutional Investor Count

Data Source: 21Shares, Bloomberg

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Hedge Funds and Market Makers Drive Bitcoin ETP Accumulation to New Highs

Hedge funds led the charge in Q4, increasing their AUM in spot Bitcoin ETPs from $8.5 billion to $13.8 billion, a $5.3 billion surge, marking a 61.9% jump and making them the largest contributors to the quarter’s growth. Investment advisors remained the biggest institutional investors by capital invested, with their holdings rising 37.3% from $7.0 billion to $9.6 billion. Banks also significantly increased their exposure, more than doubling their Bitcoin ETP holdings by 104.1% from $145.8 million to $297.7 million. Pension funds and private equity firms saw similar momentum, with allocations more than doubling at 103.0% and 101.8%, respectively.

Hedge funds and market makers emerged as the fastest-growing institutional investors in spot Ethereum ETPs, driving a significant portion of the overall AUM increase. Hedge fund holdings surged 237.8% from $212.21 million to $716.81 million, making them the second-largest holders by institutional AUM. Market makers saw even more explosive growth, with their allocations skyrocketing 370.6% from $89.44 million to $420.95 million, highlighting their increasing role in Ethereum ETP liquidity. Meanwhile, investment advisors remained the largest holders, growing their AUM by 50.3% to $864.03 million, representing 38% of total institutional assets in Ethereum ETPs. This rapid expansion underscores Ethereum’s strengthening position as an institutional-grade asset.

The Rise of Nation-State Bitcoin Adoption: Sovereign Wealth Funds Enter the Market and Pension Funds Allocate Further

Sovereign wealth funds and pension funds are increasingly entering the Bitcoin ETP market, setting a whole new class of institutional investors—nation-states—into the digital asset space. The Abu Dhabi sovereign wealth fund made a significant move, purchasing approximately $455 million worth of Bitcoin ETPs, marking one of the largest sovereign investments in the space to date. Meanwhile, U.S. pension funds are also ramping up their exposure—most notably, the State of Wisconsin, which more than doubled its Bitcoin ETP holdings to over $335 million. These investments underscore Bitcoin’s evolving role as a strategic asset within institutional portfolios, bridging the gap between traditional finance and digital assets. 

As sovereign entities and pension funds continue to allocate capital, Bitcoin ETPs are solidifying their status as a mainstream investment vehicle. Looking ahead, we may see more nation-states enter the space as governments worldwide set their sights on Bitcoin and digital assets. With President Trump signing an executive order to explore the creation of a U.S. Bitcoin strategic reserve and digital asset stockpile, and over 20 states currently evaluating similar initiatives, Bitcoin’s role in national reserves and economic strategy is becoming increasingly apparent.

$35 Billion Hedge Fund Enters the Chat: Brevan Howard Goes Big on Bitcoin with $1.4 Billion ETP Investment

Brevan Howard, one of the world’s most prominent hedge funds with $35 billion in assets under management, has entered the Bitcoin ETP market in a big way, purchasing over $1.4 billion worth of BTC ETPs. This move marks a significant step for traditional macro-focused hedge funds, further legitimizing Bitcoin as a macro asset and an institutional investment. Brevan Howard’s investment aligns with a broader trend of top-tier financial institutions allocating capital to digital assets. As more hedge funds follow suit, Bitcoin ETPs are increasingly cementing their place within mainstream institutional investment strategies.

Conclusion

Q4 13F filings highlight surging institutional demand for Bitcoin and Ethereum ETPs, solidifying digital assets as a key component of modern portfolios. In less than a year, Bitcoin ETPs have amassed over $110 billion in AUM—an achievement that dwarfs every other ETF launch in history. Remarkably, their AUM is nearly three times that of all commodity ETFs combined (excluding gold), with Bitcoin ETPs at $110 billion compared to $40 billion for the others—an unprecedented milestone. Inflows further underscore this momentum, with Bitcoin ETPs attracting over $33 billion in 2024, surpassing tech ETFs, which saw $26 billion, and outpacing gold ETFs by more than tenfold. Meanwhile, Ethereum ETPs are gaining similar traction, with institutional holdings nearly doubling in Q4 as market makers and hedge funds ramped up exposure. The increasing adoption of both Bitcoin and Ethereum spot ETPs further validates digital assets as a distinct and essential sleeve in modern investment portfolios, solidifying their role alongside traditional asset classes. 

Perhaps even more telling of this shift is the entry of a sovereign wealth fund into the Bitcoin ETP market, a monumental step that signals growing acceptance of Bitcoin as a strategic reserve asset at the highest levels of institutional capital.

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