Majority of Major US Hedge Funds Now Invest in Bitcoin ETFs

In a significant shift toward the widespread adoption of digital assets, more than half of major U.S. hedge funds now own bitcoin exchange-traded funds (ETFs), according to a report by River.

Of the 25 largest hedge funds in the U.S., more than half now have exposure to bitcoin. Additionally, 11 of the 25 largest registered investment advisors (RIAs) now have an allocation, along with hundreds of smaller ones, the report said.

In total, 534 institutions with over $1 billion in assets now hold Bitcoin ETFs.

The rise in hedge fund investment in Bitcoin ETFs is a sign of a broader trend toward diversification and innovation in investment strategies. As traditional markets face uncertainties and challenges, hedge funds are exploring alternative assets like cryptocurrencies to improve portfolio performance and hedge against inflation and economic instability.

The growing interest of hedge funds in Bitcoin ETFs is expected to have a domino effect on the entire financial sector. It could lead to an increase in demand for Bitcoin and other digital assets, further driving up their prices and market capitalization.

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