Top US hedge funds adopt Spot Bitcoin ETFs, 13 out of 25 invested: River Report

Last updated: May 18, 2024 at 12:00 p.m. EDT | 2 minutes of reading

Of the top 25 hedge funds in the United States, 13 entered the market by investing in ETFs during the first quarter.

Point72, the popular hedge fund with $34 billion in assets under management, revealed its investment in the Fidelity Wise Origin Bitcoin Fund (FBTC).

According to a recent filingPoint72 held $77.5 million in FBTC at the end of the first quarter.

The move follows a growing trend among various hedge funds that have disclosed their purchase of shares in Bitcoin spot exchange-traded funds.

Leading hedge funds, including Elliott Capital led by Paul Singer and Millennium Management owned by Izzy Englander, have publicly shared their investments in these new funds.

Millennium Management is the largest holder of Spot Bitcoin ETF

Millennium Management is notably the largest institutional holder of these funds, with approximately $2 billion invested as of March 31.

Other notable names among investors include Fortress Investment Group and Schonfeld Strategic Advisors.

While spot ETF purchases by these hedge funds can be viewed as a long-term bet on the potential price appreciation of Bitcoin, it is important to note that these vehicles can also serve other purposes.

Hedge funds can use them for market making, hedging strategies, yield generation or even short-term reversal trades, among other reasons.

The growing involvement of major hedge funds in spot Bitcoin ETFs speaks to the growing acceptance and interest in cryptocurrencies within traditional finance.

Bitcoin will return to highs of $74,000

Leading trading firm QCP Capital expressed optimism about Bitcoin price dynamics, forecasting potential back to highs of $74,000.

In a recent note, the company said it observed significant buyers acquiring 100,000-120,000 BTC calls for December 2024, indicating confidence in the cryptocurrency’s upward movement.

“US CPI numbers triggered an out-of-range breakout among risk assets. BTC has since returned above 66,000,” the company wrote.

Likewise, technical analyst Rekt Capital believes that Bitcoin is out of the halving “danger zone” and has entered an accumulation phase, as indicated by the weakening of selling pressure.

“The (purple) post-Bitcoin halving ‘danger zone’ is officially over,” the popular crypto trader wrote in a recent post on X.

Despite the optimistic view of some analysts, Michael Novogratz, founder of Galaxy Digital Holdings, a major digital asset financial services company, expects Bitcoin to remain in a relatively narrow trading range in the current quarter.

As noted, he expects Bitcoin to remain in a range of around $55,000 to $75,000 until specific market events or circumstances push prices higher.

Novogratz mentioned the tailwinds experienced in the fourth quarter of last year and the first quarter of this year.

“I think that’s probably where we are for this quarter, maybe next quarter until either A, the Fed starts cutting rates because the economy is finally slowing down, or B, we let’s go through the elections and I think the elections will bring clarity one way or another to the crypto regulatory landscape.

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