Millennium Leads Wall Street Charge into Bitcoin ETFs

Last Updated:
Millennium Leads Wall Street Charge into Bitcoin ETFs
  • Industry giant Millennium Management LLC holds nearly $2 billion across various spot Bitcoin ETFs launched earlier this year.
  • Bitwise CIO, Matt Hougan, predicts the investor base for these ETFs could reach 700, a significant increase compared to typical launches.
  • Hougan described the level of institutional interest as “unprecedented,” highlighting the growing acceptance of Bitcoin within traditional financial markets.

A surge of hedge funds and asset managers, including industry giant Millennium Management LLC, have poured in significant capital into the spot Bitcoin Exchange-Traded Funds (ETFs) approved in the United States earlier this year. The move underscores growing institutional interest in cryptocurrency, a once-niche asset class.

According to regulatory filings analyzed by Bloomberg ETF analyst Eric Balchunas, New York-based Millennium Management disclosed holdings of nearly $2 billion across various Bitcoin ETFs as of March 31. These investments spanned:

BlackRock’s iShares Bitcoin Trust

The Grayscale Bitcoin Trust

Fidelity Wise Origin Bitcoin Fund

Bitwise Bitcoin ETF

ARK 21Shares Bitcoin ETF

Boston-based Bracebridge Capital, which manages investments for prestigious institutions like Yale and Princeton Universities, also entered the fray. They revealed ownership of $262 million in shares of the ARK 21Shares Bitcoin ETF and $81 million in the BlackRock product.

Even the Wisconsin Investment Board, overseeing assets for the state’s retirement system, joined the wave. They purchased over $99 million in BlackRock’s iShares Bitcoin Trust and hold more than $63 million in the Grayscale Bitcoin Trust.

Balchunas’ analysis of 13F filings for the first quarter suggests a staggering number of investors – over 500 – have flocked to the spot BTC ETFs. This represents more than 200 times the average number of investors for a newly launched exchange-traded fund. Notably, 60% of these holders are investment advisors, while hedge funds comprise 25%.

In a client memo posted on Bitwise’s platform, Chief Investment Officer Matt Hougan predicted the investor base could swell to 700, with total Assets Under Management (AUM) reaching $5 billion. Hougan described this level of investment as “unprecedented.”

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.