As Bitcoin (BTC) tries to recover from the sharp decline in early August, its volatility has also increased recently.
Despite Bitcoin's recent volatility, analysts said institutional investors remain committed to Bitcoin.
Despite Rising Volatility, Institutions Continue to Accumulate Bitcoin!
Despite the rising volatility, institutional investors continue to invest in BTC and maintain their existing spot Bitcoin ETF holdings, according to analysts.
Speaking to The Block, Bitwise European Head of Research André Dragosch said that institutional investors are not shying away from the increased Bitcoin volatility and are staying pretty steady and not selling their BTC.
The majority of institutional investors who invested in spot Bitcoin ETFs in the first quarter of this year either held on to their shares or bought more in the second quarter.
“In the first quarter, 44% of those registered increased their holdings, 22% held steady, and only 21% decreased. When we compare this result with other ETFs, the case for Bitcoin is really good.”
To illustrate the growing institutional involvement in Bitcoin, Dragosch noted that over 60% of the world’s leading hedge funds now invest in Bitcoin through ETFs, indicating growing institutional interest.
Dragosch cited spot BTC ETF investments by major hedge funds such as Millennium, Schonfeld, Boothbay, Capula and others as an example of this.
Wintermute analysts also noted that despite the significant volatility in Bitcoin, institutional investors' interest in BTC has not decreased, but rather increased.
“Despite Bitcoin price falling more than 20% in the second quarter of the year, institutional investors did not back down and continued to accumulate. This further highlighted the increasing mainstream acceptance and institutional interest in Bitcoin as an investment asset,” Wintermute analysts wrote.
*This is not investment advice.