Barclays Raises BlackRock Bitcoin ETF Stake 48% as Banks Expand Holdings

Barclays reported holding 3.94 million shares of BlackRock’s spot Bitcoin exchange-traded fund at the end of the third quarter, a 48% increase from the previous quarter. According to Cointelegraph, a Friday Form 13F filing showed the bank’s position in the iShares Bitcoin Trust ETF (IBIT) was worth about $187 million on Sept. 30, compared with $88.5 million for 2.66 million shares on June 30. Citigroup also disclosed increased exposure, reporting a new position worth about $119 million in the Fidelity Wise Origin Bitcoin Fund (FBTC) and raising its IBIT holdings 50% to about 521,000 shares from 347,000 at the end of June. Bitwise analyst Camran Khosravi said early indications suggest longer-term holders are making up a growing share of spot Bitcoin ETF investors, citing increased bank exposure. The filings provide an initial picture of institutional ownership, but major holders and hedge funds had yet to disclose their third-quarter positions. Institutional investment managers have until Monday to file their reports. Bitwise data shared with Cointelegraph showed banks represented $258 million, or 4.9%, of reported spot Bitcoin ETF holdings among early third-quarter filers, up from $107 million, or 3.2%, in Q2. Investment advisers remained the largest group, with $3.5 billion, or 66.6%, of reported positions, compared with $2.2 billion in the previous quarter. The comparison covered 1,389 institutions that had filed third-quarter reports by Friday; their combined spot Bitcoin ETF holdings rose to $5.25 billion from $3.35 billion. Khosravi said financial advisers at major banks and wealth platforms can recommend Bitcoin ETFs to clients, a shift he expects to become more apparent in institutional filings over the coming quarters. PrimeXBT senior market analyst Jonatan Randin said higher ETF valuations do not necessarily indicate new institutional purchases, noting that IBIT gained about 41% in price in Q3. He said share counts are important to consider alongside dollar values. An October CoinShares survey found diversification accounted for 40% of responses on why investors held digital assets, compared with less than 9% for speculation. The filings reflect holdings as of Sept. 30, before Bitcoin’s subsequent decline and spot ETF outflows. US spot Bitcoin ETFs recorded about $6.34 billion in net inflows during the third quarter, followed by roughly $2.1 billion in net outflows in Q4 through Tuesday, according to SoSoValue data.