Thursday Newsletter

Explore the latest trends, gain valuable insights, and stay informed in the dynamic cryptocurrency ecosystem.

16 May 2024

In the latest financial disclosure, renowned international hedge fund Millennium Management has unveiled its significant investment in Bitcoin ETFs, totaling close to $2 billion. Diving into the specifics, the fund diversified its holdings across five different spot Bitcoin ETF products, as outlined in its 13F filing with the United States Securities and Exchange Commission for the first quarter of 2024.

Millennium’s strategic allocation encompasses a variety of spot Bitcoin exchange-traded-funds, including the ARK 21Shares Bitcoin ETF, Bitwise Bitcoin ETF, Grayscale Bitcoin Trust, iShares Bitcoin Trust, and Fidelity Wise Origin Bitcoin ETF. Notably, BlackRock’s Bitcoin fund emerged as Millennium’s primary investment, with over $844 million committed, closely followed by Fidelity’s fund, with holdings exceeding $806 million.

Bloomberg ETF analyst Eric Balchunas dubbed Millennium as the “king” of Bitcoin ETF holders, highlighting its remarkable 200-fold exposure compared to the average new ETF holder in the top 500. This revelation underscores the substantial institutional interest in Bitcoin ETFs, with approximately 60% of new buyers comprising investment advisory firms and 25% represented by hedge funds.

The recent wave of mandatory 13F filings has provided invaluable insights into the landscape of Bitcoin ETF ownership. According to Bitwise chief investment officer Matt Hougan, this influx of institutional interest signals a promising trajectory for Bitcoin’s future.

In a recent memo to investors, Hougan emphasized the significance of professional investors’ ownership of Bitcoin ETFs, citing notable firms like Hightower Advisors, Bracebridge Capital, and Cambridge Investment Research among the product holders.

With each filing deadline, the institutional embrace of Bitcoin ETFs continues to expand. Hougan anticipates a surge in professional firms participating in Bitcoin ETF investments, projecting a total assets under management (AUM) nearing $5 billion by the upcoming filing deadline on May 15.

Furthermore, the State of Wisconsin disclosed its substantial investment of $164 million across two funds offered by Grayscale and BlackRock, further underlining the growing institutional confidence in Bitcoin and its associated investment vehicles.