- The new era of crypto ETFs traded like regular stocks began on January 11th 2024 – and the results so far suggest a raging success.
- As US institutions released portfolio holdings as part of their 13F filings for the first quarter, several big names revealed positions in Bitcoin ETFs.
- Asset managers Millenium led the way with over US$2b held across five different funds.
- Hedge funds were big players, comprising approximately 25% of all institutions holding BTC.
Bitcoin’s run to a new all-time high in early 2024 was largely spurred by the approval of spot ETFs. The introduction of a new financial instrument for BTC was well-received by the community, however, unlike other bull runs, retail investors mostly sat on the sidelines.
Rather, the hype was driven by institutions and big businesses, who began buying up a more accessible and traditional form of cryptocurrency. With last week’s flurry of 13F filings made by US businesses, we finally got a look at exactly who was picking up BTC ETFs.
Related: More Banks, Asset Managers Disclose Bitcoin ETF Holdings to the Tune of Billions of Dollars
Are the Hedge Funds Up to Something?
Perhaps the most surprising, and also funniest, portfolio revealed to be holding the Spot Bitcoin ETF was JPMorgan Chase. This is despite CEO Jamie Dimon repeatedly diminishing the sector as a joke.
Well, who’s laughing now?
Other notable buyers included Millenium, global asset managers that accrued a whopping US$2b (AU$3b) across five ETFs – the majority coming from BlackRock’s iBIT (a common theme across most holders).
This number dwarfed the next biggest holders, Schonfeld Strategic Advisors, who reported a portfolio of approximately US$446m (AU$668m).
Approximately 937 institutions around the world have purchased Bitcoin via a US spot ETF – a “mind-blowing figure” according to Bloomberg analyst Eric Balchunas. About 20% of all BTC ETF holdings came from professional institutions and investors, suggesting a real turnaround in sentiment from TradFi players over the past few years.
Interestingly, about a quarter of all professional investments came from hedge funds who are becoming a major factor in the scene.
Hedge funds haven’t exactly built a huge reputation for trust among the community, so some are a little wary of their involvement. However, it might simply mean that the tides are turning and BTC is becoming a long-term option for investors of all demographics.
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Are the Hedge Funds Up to Something?
Unequivocally, the answer to the above is always yes. But that’s not always something bad, as Bitcoin and crypto found out.
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