Cryptocurrency investors are eagerly anticipating the upcoming 13F filings this week. It is one of the most important topics of the week. In our weekly review of significant developments, we will see which institutions have triggered the over $12 billion (later decreased) reserve size in the spot Bitcoin ETF sector.
Good News for Cryptocurrencies
Bitwise, one of the issuers of US-based spot Bitcoin ETFs, and its CIO Matt Hougan evaluated the newly arriving 13F filings. The renowned figure stated that the entries seen in the filings are just the initial allocations (or down payments) and is confident that much more will be seen over time. According to Hougan, it takes more than three months for most professional investors to evaluate crypto.
Spot Bitcoin ETFs are still very new, and we have always mentioned that the full potential will be revealed after the first six months of performance. Hougan also says that within 6-12 months, stages of due diligence, personal allocation, isolated client allocations, and platform-wide allocations will be completed.
“About six months after the initial allocation, many firms start allocating to all their clients with allocations ranging between 1-5% of the portfolio. The biggest promise of Bitcoin ETFs is that they can significantly increase the pool of capital investing in the asset by opening the door for professional investors to collectively buy Bitcoin.”
What Are 13F Filings?
It is a report submitted to the SEC every three months. Institutional investment managers with equity assets of $100 million or more under management submit this report to the institution every quarter. This report, which provides a summary of the stocks in their investment baskets, also includes details if they have purchased BTC ETFs.
For example, in the report we saw at the beginning of this week, we learned that Bracebridge Capital held ARKB and IBIT funds. Over $300 million was allocated solely to Bitcoin ETFs. Such a figure is impressive, considering these ETFs have not even completed their first three full months.
As mentioned at the beginning, professional investors, fund managers, and investment companies invest in these ETFs or decide whether to invest 6-12 months after the ETF launch date. Especially for something as new as Bitcoin, this period can be even longer, but the extremely bold actions of some companies are highly motivating.
