Barclays disclosed holdings of 3.94 million shares in BlackRock's spot Bitcoin exchange-traded fund (ETF) at the end of the third quarter, a 48% increase from the previous quarter, according to the British bank's Form 13F filing made public on Friday. 13F filings are quarterly disclosures that institutional investment managers overseeing at least $100 million in securities must file with the SEC, offering a standardized look at how large institutions allocate to US-listed funds.

The position in the iShares Bitcoin Trust ETF (IBIT) — BlackRock's spot Bitcoin fund, which launched in January 2024 following SEC approval of US spot Bitcoin ETFs — was valued at approximately $187 million as of Sept. 30, up from $88.5 million for 2.66 million shares on June 30, per the filing.

"Early readings suggest longer-term holders make up a growing share of the spot bitcoin ETF investor base," Bitwise analyst Camran Khosravi told Cointelegraph, citing increased bank exposure, including at Citigroup.

Citigroup separately reported a new position worth roughly $119 million in the Fidelity Wise Origin Bitcoin Fund (FBTC), Fidelity's spot Bitcoin ETF that debuted the same month. The bank's IBIT holdings also climbed 50% to approximately 521,000 shares, from 347,000 at the end of June, according to its 13F filing.

The disclosures offer an early indication of shifting institutional ownership of Bitcoin ETFs, with more major banks and hedge funds yet to reveal their third-quarter positions. Institutional investment managers have until Monday to file their quarterly holdings reports, 45 days after the quarter's close.

Banks gain ground among Bitcoin ETF holders

Banks accounted for $258 million, or 4.9%, of reported spot Bitcoin ETF holdings among early third-quarter filers, up from $107 million, or 3.2%, in the second quarter, according to Bitwise data shared with Cointelegraph.

Investment advisers remained the largest category of holders, with $3.5 billion, or 66.6%, of reported positions, up from $2.2 billion in the prior quarter. Bitwise's comparison covered the 1,389 institutions that had filed third-quarter reports by Friday; the value of their combined spot Bitcoin ETF holdings rose to $5.25 billion from $3.35 billion.

Khosravi added that financial advisers at major banks and wealth platforms can now recommend Bitcoin ETFs to clients, a development he expects to become increasingly visible in institutional filings over the coming quarters.

The figures remain preliminary, with major holders including JPMorgan, Wells Fargo and hedge funds Millennium and Schonfeld still to disclose their positions ahead of the filing deadline.

Price gains lift the value of Bitcoin ETF holdings

Rising valuations do not necessarily reflect fresh institutional buying, according to Jonatan Randin, senior market analyst at PrimeXBT. "It's important to look at the holdings in shares and not just the increase in dollar amount," Randin told Cointelegraph, noting that IBIT gained about 41% in price during the third quarter.

An October CoinShares survey separately found that diversification accounted for 40% of responses on why investors hold digital assets, compared with less than 9% for speculation.

Randin also cautioned that the filings capture holdings as of Sept. 30, before Bitcoin's subsequent decline and the wave of outflows from spot ETFs. Because 13F reports list long positions as of a single date, they do not capture trading activity after the quarter ended. 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 the fourth quarter through Tuesday, according to SoSoValue data.