Over 60% of leading global hedge funds are now investing in bitcoin through exchange-traded funds (ETFs), signaling a significant rise in institutional interest.

This growing acceptance of bitcoin as an investment is bolstered by a diverse range of investors, including hedge funds and pension providers.

Major hedge funds such as Millennium, Schonfeld, Boothbay, and Capula are notable holders of spot bitcoin ETFs, which has contributed to increased trading volume.

Recent 13F filings for the second quarter of 2024 reveal that 44% of institutional investors have increased their holdings in spot bitcoin ETFs, while 22% have maintained their positions.

Despite a challenging market, where bitcoin's price dropped by over 20% in the second quarter, institutional investors have shown resilience by continuing to accumulate bitcoin.

André Dragosch, Head of Research Europe at Bitwise, noted that institutional investors are more inclined to 'hodl' their bitcoin assets rather than sell during price fluctuations.

For instance, the State of Wisconsin Investment Board holds 2,898,051 shares of spot bitcoin ETFs and has recently exited its position in Grayscale.