16 May
16May

International hedge fund Millennium Management has unveiled that it possessed nearly $2 billion worth of spot Bitcoin ETFs in the first quarter of this year. According to its 13F filing with the United States Securities and Exchange Commission, Millennium held a combined $1.94 billion across five primary spot Bitcoin ETFs as of March 31.

The hedge fund diversified its holdings of spot Bitcoin ETF products among several options, including ARK 21Shares Bitcoin ETF (ARKB), Bitwise Bitcoin ETF (BITB), Grayscale Bitcoin Trust (GBTC), iShares Bitcoin Trust (IBIT), and Fidelity Wise Origin Bitcoin ETF (FBTC).

BlackRock’s Bitcoin fund emerged as Millennium’s largest allocation, with investments exceeding $844 million. Following closely, Fidelity’s fund held just over $806 million worth of FBTC shares.

Eric Balchunas, an ETF analyst at Bloomberg, described Millennium as the "king" of Bitcoin ETF holders, noting that the firm held exposure 200 times higher than the average new ETF holder among the top 500.

Balchunas also shared insights into the composition of new spot Bitcoin ETF buyers, revealing that about 60% were investment advisory firms, while approximately 25% were hedge funds.

Bitwise chief investment officer Matt Hougan expressed growing optimism about Bitcoin's future, particularly fueled by the recent compulsory 13F filings shedding light on who is investing in spot Bitcoin ETFs. Hougan highlighted the significant institutional interest in these products as a positive sign for Bitcoin's trajectory.

In a memo to investors on May 13, Hougan emphasized the importance of the quarterly 13F filings in revealing the details behind the ownership of these funds. He pointed out the participation of professional investors, including firms like Hightower Advisors, Bracebridge Capital, and Cambridge Investment Research, as holders of Bitcoin products.

Hougan anticipated a substantial increase in the number of professional firms and total assets under management (AUM) in Bitcoin ETFs by the May 15 filing deadline, potentially exceeding 700 firms and approaching a total AUM of $5 billion.

Additionally, on May 14, The State of Wisconsin disclosed its investment of $164 million across two funds offered by Grayscale and BlackRock.

May 2024, Cryptoniteuae

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