Institutional exposure to Bitcoin increased significantly in the fourth quarter of 2024, according to an analytical report. Bitcoin is becoming a preferred asset class for institutional investors due to its historical performance and reputation against inflation. The approval of US Bitcoin spot ETFs has made it easier for traditional retail and institutional investors to buy the asset. Bitcoin products have seen a cumulative net inflow of $40 billion. The report shows a notable uptick in institutions holding US Bitcoin ETFs, with 429 more institutional investors purchasing them in Q4 2024. The number of investment managers holding Bitcoin also surged during this period. The percentage of Bitcoin ETFs held by institutions increased to 25.38% of the AUM. BlackRock iShares Bitcoin Trust (IBIT) led the institutional adoption curve, with institutional investments flowing into the issuer. The Fidelity Wise Origin Bitcoin Trust (FBTC) also saw substantial upticks. The increase in institutional investment coincided with Donald Trump's election win, which attracted institutional interest in the sector.



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