What to know:
- In a twist that would make even the most seasoned gambler raise an eyebrow, Wall Street institutions have decided to dip their toes into the murky waters of bitcoin, all thanks to spot ETFs and crypto-linked U.S. stocks, as revealed by the SEC’s latest gossip.
- Brevan Howard, that hedge fund with a penchant for macro trading, has nearly doubled its stake in BlackRock’s iShares Bitcoin Trust to a staggering $2.3 billion. Meanwhile, Goldman Sachs, Wells Fargo, and Cantor Fitzgerald are also joining the party, boosting their ETF and crypto-stock holdings like kids in a candy store.
- Norway’s sovereign wealth fund, in a move that screams “why not?”, has increased its indirect bitcoin exposure by a whopping 192% year-over-year, investing in companies like MicroStrategy and Coinbase. But don’t get too excited; it’s still just a tiny speck in its $2 trillion portfolio.
As the second quarter rolled in, Wall Street decided it was time to get cozy with bitcoin, adding positions not just in spot bitcoin exchange-traded funds (ETFs) but also in U.S. stocks that are practically glued to the cryptocurrency’s price, according to the latest SEC filings. Who knew finance could be so thrilling?
Brevan Howard, the hedge fund that’s always looking for the next big thing, nearly doubled its position in BlackRock’s iShares Bitcoin Trust (IBIT) during the second quarter. By the end of June, they were holding 37.9 million shares, up from a mere 21.5 million in March. Talk about a growth spurt!
With a stake worth more than $2.6 billion based on IBIT’s closing price on June 28, Brevan Howard has become one of the largest institutional holders of IBIT, right alongside Goldman Sachs, which has upped its position to $3.3 billion in IBIT and Fidelity’s Wise Origin Bitcoin Trust (FBTC). And let’s not forget Goldman’s $489 million worth of the iShares Ethereum Trust (ETHA). They’re practically swimming in crypto cash!
Now, Goldman’s ownership of these ETFs isn’t exactly a direct bet on bitcoin’s price; it’s more like a fancy way of saying they’re managing their clients’ money. But hey, who’s keeping score?
Brevan Howard, known for its macro trading prowess, has long been a player in the crypto game, operating a dedicated digital asset division called BH Digital. This unit manages billions in assets and invests in blockchain infrastructure, decentralized finance, and all those buzzwords that make finance folks giddy.
Harvard, Wells Fargo, and more
Other big players in the IBIT game include Harvard University, which has reported a $1.9 billion stake in the ETF, and Abu Dhabi’s Mubadala Investment Company, which is still holding onto $681 million like it’s a prized possession.
In the realm of U.S. banks, Wells Fargo has nearly quadrupled its holdings of IBIT to $160 million, up from a measly $26 million last quarter, while still clutching a $200,000 stake in the Grayscale Bitcoin Fund (GBTC). Talk about a glow-up!
Cantor Fitzgerald has also jumped on the bandwagon, boosting its holdings to over $250 million while increasing stakes in crypto-related stocks like Strategy (MSTR), Coinbase (COIN), and Robinhood (HOOD). It’s a crypto buffet, and everyone’s invited!
Trading firm Jane Street has revealed a $1.46 billion stake in IBIT, making it the largest single position in its portfolio after Tesla (TSLA) at $1.41 billion. They’ve even increased their stake in MSTR while trimming their holdings of FBTC. It’s like a financial game of musical chairs!
Spot bitcoin ETFs like IBIT, which made their grand debut in January, allow investors to get a taste of bitcoin’s price without actually holding the cryptocurrency. It’s like having your cake and eating it too, but with a side of traditional brokerage accounts and custodial arrangements.
Norway buys more
For some overseas entities, the path to bitcoin exposure is paved with U.S.-listed companies that hold hefty amounts of BTC on their balance sheets. It’s like a treasure hunt, but with stocks!
Norway’s sovereign wealth fund, along with several other European state-backed investors, is opting for equity stakes in crypto-adjacent firms rather than holding the crypto directly. Smart move, or just playing it safe?
Norges Bank Investment Management (NBIM), the investment arm of the Norwegian central bank, now indirectly holds 7,161 BTC, according to a new note from K33 Research. That’s a 192% increase from 2,446 BTC a year ago, and up 87% from the 3,821 BTC it held at the end of 2024. Who knew Norway was so into bitcoin?
The largest chunk of its exposure-3,005 BTC-comes through shares in Strategy. The rest is spread across companies like Marathon Digital, Coinbase, Block, and Metaplanet. K33 even counted GME (GameStop) and a few smaller holdings as part of the mix. It’s like a financial potluck!
Still, let’s not get too carried away. The exposure remains a mere drop in the ocean. Norway’s fund owns stakes in thousands of companies across global markets, and the value of its bitcoin-linked investments is just a speck in its total holdings. At a current market price of $117,502 per BTC, the fund’s 7,161 BTC is worth around $841 million-less than 0.05% of the $2 trillion portfolio. It’s like finding a penny in a couch full of cash!
The sharp increase over the past year may signal growing institutional comfort with the asset class, but let’s not kid ourselves-it doesn’t represent a major strategic shift-yet. But hey, anything can happen in the wild world of finance!
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2025-08-17 23:32