Bitcoin continues to gain ground in mainstream adoption, as traditional finance (TradFi) entities increasingly embrace the digital asset. The surge in investment in spot Bitcoin exchange-traded funds (ETFs) underscores the growing institutional interest in cryptocurrency assets.

During the last quarter, a substantial number of U.S. banks, investment managers, hedge funds, and professional firms invested in spot Bitcoin ETFs, as evident from their 13F filings with the Securities and Exchange Commission (SEC).

According to a tweet by K33 Research, a digital assets investment analysis platform, as of March 31, 937 professional firms in the U.S. had stakes in the spot Bitcoin ETF market. Consequently, it might be challenging to identify and enumerate every TradFi firm that joined the Bitcoin ETF trend in the first quarter of the year.

Several major TradFi players entered the Bitcoin ETF arena, with notable investments from Millennium Management, a heavyweight hedge fund, and Susquehanna International Group (SIG), a global quantitative trading firm, pouring $2 billion and $1 billion into Bitcoin products, respectively.

Following suit were Bracebridge Capital, a Boston-based hedge fund managing funds for prestigious universities like Yale and Princeton, and Boothbay Fund, another New York-based fund manager, with investments worth $434 million and $377 million, respectively.

Significant ETF disclosures also came from industry giants like Morgan Stanley and Pine Ridge Advisers, with investments totaling $269 million and $205.8 million, respectively.

Moreover, alternative asset manager Aristeia Capital, investment firm Graham Capital, and hedge fund manager Crcm LP disclosed substantial exposures of $163.4 million, $102.6 million, and $96.6 million, respectively, to Bitcoin ETFs.

Furthermore, smaller investments were disclosed by various professional firms such as Hightower Advisors, Fortress Investment Group, Cambridge Investment Research, Sequoia Financial Advisors, Integrated Advisors, and Brown Advisory.

Major banks like JPMorgan Chase and Wells Fargo also entered the Bitcoin ETF market, albeit with smaller investments.

It's noteworthy that most of these firms diversified their investments across several ETFs, with Grayscale’s GBTC, BlackRock’s IBIT, Fidelity’s FBTC, and Ark Invest’s ARKB receiving significant allocations.

Looking ahead, state-owned professional firms are expected to enter the digital asset market, with the State of Wisconsin Investment Board leading the way with a $163 million exposure to Bitcoin ETFs.