- Hedge funds, pensions, and banks continued to invest heavily in exchange-traded funds (ETFs) that invest directly in Bitcoin.
- Prominent hedge funds like Millennium Management, Capula Investment Management, Schonfeld Strategic Advisors, and Point72 Asset Management were among the buyers of Bitcoin ETFs.
- Despite trimming their stakes from the previous quarter, Millennium Management remained the top holder in most Bitcoin ETFs, including BlackRock’s iShares Bitcoin Trust (IBIT).
Bitcoin exchange-traded funds (ETFs) have seen increased demand from hedge funds, pensions, and banks as more traditional investors embrace cryptocurrencies. US regulators helped push cryptocurrencies like Bitcoin into the mainstream by approving the first spot Bitcoin ETFs earlier this year.
Millennium Management Remains Top Holder Despite Trimming Stakes
Well-known hedge fund Millennium Management held shares in at least five Bitcoin ETFs, making it the top holder for most of these funds. This is according to a Bloomberg analysis of second-quarter regulatory filings. Millennium, which has $68 billion in assets under management, significantly trimmed its stakes from the previous quarter but remained the largest shareholder in ETFs like BlackRock’s iShares Bitcoin Trust (IBIT).
701 New Funds Bought Into Spot Bitcoin ETFs
There has been an influx of new buyers into spot Bitcoin ETFs. 701 new funds reported holdings in these ETFs that invest directly in Bitcoin. As cryptocurrencies become more mainstream, traditional investment funds are starting to allocate capital to this emerging asset class.
Outlook
The growing institutional demand for Bitcoin ETFs signals wider acceptance of cryptocurrencies as an investable asset class. While early cryptocurrency investors tended to be individuals, investment funds have warmed up to digital assets over the past year as the market matured. The SEC’s approval of spot Bitcoin ETFs opened the floodgates for investments from pensions, endowments, and other traditionally conservative institutions. If the appetite from hedge funds and other institutional investors continues, the total assets under management for Bitcoin ETFs could balloon in the coming years.
