ETFs
Big Institutions Bet Big on Bitcoin ETFs Revealed in SEC Filings
Entities such as Millenium Management, one of the world’s five largest hedge funds, have invested billions in spot Bitcoin ETFs launched in January.
BlackRock’s Bitcoin ETF (IBIT) claimed 414 large institutional investors in the first quarter.
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Posted May 16, 2024 at 2:47 PM EST.
The liquidity-laden institutions responsible for pumping large sums into spot Bitcoin exchange-traded funds (ETFs) over the past quarter have been revealed, thanks to recent 13F filings with the Securities and Exchanges Commission (SEC) the United States.
One of the world’s largest hedge funds, Millennium Management, has invested almost 2 billion dollars in Bitcoin ETFs, while other notable entities such as investment bank Morgan Stanley and even the Wisconsin State Investment Council have invested hundreds of millions in the recently approved investment vehicles.
The SEC requires all institutional investment companies managing $100 million or more to report their holdings on a quarterly basis via Form 13F by a certain deadline, which fell on May 15 of this year for first quarter filings .
Eleven spot Bitcoin ETFs – some run by prestigious firms such as BlackRock, which led the way with 414 reported 13F holders of its fund, according to Bloomberg ETF analyst Eric Balchunas – have been approved in Januaryopening the door to categorizing bitcoin as a traditional asset.
Learn more: There are now 11 Spot Bitcoin ETFs. Here is the one that suits you best
And now, many view the large stakes purchased by Millennium Management and others as further legitimization of the dominant cryptocurrency.
“Normally you don’t get these big peach institutions in the 13Fs until about a year (when the ETF gets more liquidity),” Balchunas posted on. “It’s mind-boggling,” he later told Unchained.
The big rollers
So far, it appears that Millennium Management’s nearly $2 billion stake in five different Bitcoin ETFs is the largest among institutional investment managers, representing just over 3% of its stake. 64 billion current dollars in total assets under management (AUM).
Institutional investors sometimes diversify their holdings across multiple providers.
The company disclosed an investment of $844 million in BlackRock ETF (IBIT), $806 million in Fidelity ETF (FBTC), $202 million in Grayscale ETF (GBTC) and approximately $44 million each in the Bitwise (BITW) and Ark (ARKB) ETFs.
Learn more: For what Spot Ether ETFs will likely have to wait until after the presidential election to be approved
But quantitative trading firm Susquehanna International Group comes in close behind with around 1.3 billion dollars invested in the ten active ETFs, including more than a billion dollars in the Grayscale fund.
The company describes himself As “an early entrant to the cryptocurrency market” that trades “cryptocurrencies around the clock,” the company’s bullish stance on Bitcoin ETFs should therefore come as no surprise.
Balchunas also pointed out that Susquehanna is a market maker or liquidity provider, which is why it holds some of all active Bitcoin spot ETFs.
Learn more: Hong Kong Does Not Define Ether as a Security, Issuer Says as Spot Crypto ETFs Go Live
“They hold all the ETFs in inventory in order to create markets for other investors,” Balchunas explained.
Bracebridge Capital, an investment manager based in Boston, Massachusetts, reported approximately $434 million in spot Bitcoin ETF investments. About $307 million was in Ark’s fund, $100 million was in BlackRock’s and the rest ($26 million) was in the Grayscale ETF.
Boothbay Fund Management from New York bought a total of $377 million in spot bitcoin ETF units from BlackRock ($150 million), Fidelity ($105 million), Grayscale ($70 million) and Bitwise ($52 million).
The investment bank Morgan Stanley, which in April would have gave permission to its 15,000 brokers to start offering Bitcoin ETFs, disclosed holdings of nearly $270 million in Grayscale’s bitcoin spot ETF, with a smaller $2 million stake in Ark’s fund.
One of the most notable investors was the State of Wisconsin Investment Board, which according to its depositpurchased nearly $100 million worth of Bitcoin ETF from BlackRock and invested another $63 million in the Grayscale fund.
According to his websitethe entity has nearly $160 billion in assets that it manages on behalf of the Wisconsin Retirement System, the State Investment Fund and other state trust funds.
It is official asset allocation strategy includes designating 19% of its capital for “inflation protection,” which could explain why bitcoin – widely seen as a hedge against inflation – would be an attractive investment for the organization.