Institutional investors are not particularly concerned about bitcoin's volatility

Despite fluctuations in the price of the first cryptocurrency, major players continue to show steady interest in this asset. This was stated by Andre Dragos, Head of Research at Bitwise in Europe, in an interview with The Block.

Dragos pointed out that according to asset managers' reports for the second quarter of 2024, institutional investors demonstrate "encouraging loyalty" to bitcoin ETFs, unlike similar products based on other assets such as gold.

According to him, many investors who bought bitcoin ETFs at the beginning of the year either held their positions or increased them in the spring.

To illustrate the growing institutional involvement, the expert cited data showing that over 60% of the world's largest hedge funds own bitcoin through ETFs. These organizations account for the majority of spot bitcoin ETF trading, he added.

Earlier, companies like Goldman Sachs investment bank and trading firm DRW Holdings mentioned in their filings with the SEC that they had added cryptocurrency-related ETFs to their portfolios.