Bitcoin continues to see increasing adoption in traditional finance (TradFi), as evidenced by the rapid embrace of the digital asset by traditional financial institutions. The surge in investment in spot Bitcoin exchange-traded funds (ETFs) highlights the growing institutional interest in cryptocurrency assets.

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

According to a tweet from the digital assets investment analysis platform K33 Research, as of March 31, 937 professional firms in the U.S. had invested in the spot Bitcoin ETF market. As a result, it becomes challenging to comprehensively list every TradFi firm that entered the Bitcoin ETF market in the first three months of the year.

Several major Bitcoin ETF investments were made by notable players such as Millennium Management, a heavyweight hedge fund, and Susquehanna International Group (SIG), a global quantitative trading firm, with reported investments of $2 billion and $1 billion, respectively. Following closely 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 totaling $434 million and $377 million, respectively.

Additionally, significant ETF investments were disclosed by prominent U.S. banking firm Morgan Stanley and advisory company Pine Ridge Advisers, with investments amounting to $269 million and $205.8 million, respectively. Other firms like Aristeia Capital, Graham Capital, and Crcm LP also reported substantial exposures to Bitcoin ETFs.

Several other professional firms disclosed smaller but noteworthy investments in the Bitcoin ETF market. These include Hightower Advisors, Fortress Investment Group, Cambridge Investment Research, Sequoia Financial Advisors, Integrated Advisors, and Brown Advisory. Even major banks like JPMorgan Chase and Wells Fargo, though with smaller amounts, invested in the Bitcoin ETF market.

Most of these firms diversified their investments across various ETFs, with notable allocations to Grayscale’s GBTC, BlackRock’s IBIT, Fidelity’s FBTC, and Ark Invest’s ARKB.

Furthermore, the digital asset market may witness an increase in investments from state-owned professional firms, with the State of Wisconsin Investment Board leading the way with a $163 million exposure to Bitcoin ETFs.