ETFs
Bitcoin ETFs attracted bets from Millenium Global and Wisconsin Retirement System in the first quarter
By Suzanne McGee and Hannah Lang
(Reuters) – A handful of hedge funds, including Millennium Management LLC, and other asset managers are among the institutions that have acquired stakes in recently launched U.S. exchange-traded funds (ETFs) linked to the price of bitcoin in the first quarter, according to recent regulatory filings.
New York-based Millenium revealed that it had invested $2 billion in several of the new ETFs as of March 31. This included positions in BlackRock’s iShares Bitcoin Trust, the Grayscale Bitcoin Trust, and funds launched by issuers such as Bitwise Investments and ARK Investment Management.
Other buyers included Boston-based hedge fund manager Bracebridge Capital, which held $262 million of shares in the ARK 21Shares Bitcoin ETF at the end of the first quarter and $81 million in the BlackRock product.
Bracebridge, which did not respond to calls seeking comment, counts among its clients a group of institutional investors such as the endowments of Yale University and Princeton University.
A filing from the Wisconsin State Investment Board, which manages $156 billion in assets for the Wisconsin Retirement System, revealed purchases of BlackRock’s iShares Bitcoin Trust worth more than 99 million dollars at the end of March. He also revealed holding more than $63 million in shares of the Grayscale Bitcoin Trust.
The Wisconsin State Investment Council declined to comment.
Among other hedge funds with positions in bitcoin ETFs, some had already invested in bitcoin before the U.S. Securities and Exchange Commission finally approved bitcoin spot ETFs in January.
New York-based Hunting Hill Global Capital said it holds $29.1 million in the Fidelity Wise Origin Bitcoin ETF and $21.3 million in the Grayscale Bitcoin Trust.
Adam Guren, founder and CEO of Hunting Hill, said the company has been investing in Grayscale’s Bitcoin Trust for a year or more, as the price of Bitcoin and the value of its stake increased before the ETF was approved.
Investors have invested some $29 billion in Bitcoin ETFs since January, according to data from Morningstar Direct.
The filings appear to confirm that while a handful of hedge funds have taken large positions, retail investors — including investment advisors — remain the largest category of buyers by number. Hightower Advisors, one of the nation’s largest advisory firms, disclosed holdings of approximately $68 million in Bitcoin ETFs but declined to comment on portfolio decisions.
Quarterly information, known as 13-F filings, is filed with the Securities and Exchange Commission approximately 45 days after the end of each quarter and may not reflect current positions.
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Matt Hougan, Bitwise’s chief investment officer, noted in a note to clients posted on social media platform Institutions own $5 billion or more in the new ETFs. Until the release of these documents, it was difficult to determine which investors were behind the purchase of these products, which far exceeded even the most optimistic estimates and helped drive up the price of bitcoin itself to new heights this year.
(Reporting by Suzanne McGee and Hannah Lang; editing by Ira Iosebashvili, Michelle Price and Richard Chang)