As a crypto investor with a few years of experience under my belt, I’m thrilled to see the institutional shift towards Bitcoin ETFs and Millennium Management’s significant investment in this new asset class. This move not only solidifies Bitcoin’s place as a legitimate investment option but also signifies broader acceptance within traditional financial frameworks.
The first-quarter 13F filings with the US Securities and Exchange Commission (SEC) were submitted on Wednesday, bringing the curtains down, and these reports signaled a significant change in institutional investment trends towards Bitcoin spot exchange-traded funds (ETFs). Millennium Management took the lead in this emerging asset class.
Millennium Becomes The King Of Bitcoin ETFs
Billionaire Izzy Englander’s firm, Millennium Management, with assets over $64 billion under its management, made an unprecedented investment of $2 billion in various Bitcoin Exchange-Traded Funds (ETFs). This massive investment not only makes Millennium a leading player in Bitcoin ETF ownership but also indicates a growing acceptance and validation of Bitcoin within conventional investment circles.
As a researcher examining Millennium’s investment portfolio, I discovered that their holdings were distributed among five primary funds. The first fund, BlackRock’s iShares BTC Trust (IBIT), contained an investment of $844,181,820, equivalent to 20,859,447 shares. In the second fund, Fidelity’s Wise Origin BTC Fund (FBTC), they had invested $806,640,303, which represented 12,997,749 shares. The third investment was in Grayscale’s BTC Trust (GBTC), amounting to $202,029,915 and 3,198,194 shares. Additionally, they held investments of $45,001,320 in ARK’s BTC ETF (ARKB), which translated to 634,000 shares, and $44,737,805 in Bitwise’s BTC ETF (BITB), equivalent to 1,155,717 shares.
Expert: One notable crypto analyst, MacroScope, made the observation via X that “A significant filing was released after markets closed today. This disclosure, following Wisconsin’s announcement yesterday, is likely to be one of the most impactful Bitcoin revelations thus far and will undoubtedly generate considerable interest from institutional investors.” On Tuesday, the State of Wisconsin revealed a $161 million investment in BlackRock’s IBIT and Grayscale’s GBTC funds.
Based on Bloomberg’s analysis by ETF expert Eric Balchunas, the current level of investment diversification across all Bitcoin ETFs represents uncharted territory. Notably, Millennium is the leading Bitcoin ETF investor with roughly $2 billion spread across four different ETFs. This substantial holding surpasses the typical investment for new ETFs by a significant margin, approximately 200 times.
He additionally pointed out that approximately 60% of these investments originated from investment advisors, while hedge funds accounted for around 25%. Balchunas also brought attention to the fact that IBIT, being a recently introduced ETF, typically does not exhibit such a large influx of liquidity and diverse institutional ownership.
Millennium is the leading Bitcoin ETF investor, holding approximately $2 billion collectively across four different ETFs. This represents a significant portion of the total assets under management in these ETFs, surpassing the average for new funds by around 200 times. Approximately 60% of these holdings belong to institutional investment advisors, while high-frequency funds account for about 25%. Although it’s impossible to determine their exact intentions, high-frequency funds were undeniably major buyers in this sector.
— Eric Balchunas (@EricBalchunas) May 15, 2024
He noted that it’s uncommon to observe such a wide variety of holding structures for an ETF during its initial stages, implying the strong belief among investors in Bitcoin’s capacity as a valuable investment.
The expansion of the sector was supported by further revelations from prominent financial institutions. Elliott Capital, led by Paul Singer, revealed a $12 million investment in BlackRock’s IBIT by the end of the quarter. Meanwhile, Apollo Management Holdings disclosed a significant stake worth $53.2 million in ARK/21’s ARKB.
The investment wave in Bitcoin ETFs extended beyond hedge funds and asset managers. Notably, Aristeia Capital and Hudson Bay Capital disclosed substantial holdings, boosting the total assets managed by the 10 available spot Bitcoin ETFs to a combined $12.1 billion in inflows.
As I analyzed the data from the latest round of filings before the deadline, it became clear that the market for Bitcoin was evolving at an impressive pace. Bitcoin is no longer just perceived as a niche or speculative asset but is increasingly being viewed as a legitimate component of diversified investment portfolios. This shift in perspective has attracted attention from various financial institutions, indicating a maturing market for this digital currency.
At press time, BTC traded at $65,771.
Read More
- SOL PREDICTION. SOL cryptocurrency
- USD ZAR PREDICTION
- USD PHP PREDICTION
- AVAX PREDICTION. AVAX cryptocurrency
- USD MYR PREDICTION
- DPLAT PREDICTION. DPLAT cryptocurrency
- NLS PREDICTION. NLS cryptocurrency
- CKB PREDICTION. CKB cryptocurrency
- TAO PREDICTION. TAO cryptocurrency
- LUNC PREDICTION. LUNC cryptocurrency
2024-05-16 10:11