Hedge Fund Giant Bets $2B on Bitcoin ETFs

International hedge fund Millennium Management revealed that it held almost $2 billion in spot Bitcoin exchange-traded funds (ETFs) in the first quarter of this year.

As of March 31, Millennium held $1.94 billion in five main spot Bitcoin ETFs. This information comes from its 13F filing with the United States Securities and Exchange Commission.

The hedge fund diversified its spot Bitcoin ETF holdings across five products: ARK 21Shares Bitcoin ETF (ARKB), Bitwise Bitcoin ETF (BITB), Grayscale Bitcoin Trust (GBTC), iShares Bitcoin Trust (IBIT), and Fidelity Wise Origin Bitcoin ETF (FBTC).

BlackRock’s Bitcoin fund was Millennium’s largest holding, with over $844 million invested. Fidelity’s fund was a close second, with just over $806 million worth of FBTC shares.

Largest ETF Holders $50M+.

Bloomberg ETF analyst Eric Balchunas called Millennium the “king” of Bitcoin ETF holders. He noted that the firm had 200 times the exposure of the average new ETF holder in the top 500.

About 60% of new spot Bitcoin ETF buyers were investment advisory firms, while around 25% were hedge funds, according to Balchunas.

Recent 13F filings have shown who is buying spot Bitcoin ETFs. Bitwise chief investment officer Matt Hougan said this made him more optimistic about Bitcoin's future.

In a May 13 memo, Hougan wrote that the quarterly 13F filings reveal important details about who is buying these funds. He added that the large scale of institutional interest is a positive sign for Bitcoin.

Hougan highlighted the presence of firms such as Hightower Advisors, Bracebridge Capital, and Cambridge Investment Research as Bitcoin ETF holders. He speculated that by the May 15 filing deadline, there could be over 700 professional firms with a total AUM approaching $5 billion.

On May 14, the State of Wisconsin disclosed a total investment of $164 million across two funds offered by Grayscale and BlackRock.

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