Over 600 firms reveal billions in combined investment in Bitcoin ETFs

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As a researcher with a background in finance and experience following the cryptocurrency market closely, I find this trend of institutional investments in the Bitcoin ETF extremely noteworthy. With over 600 firms investing nearly $5 billion in just one type of Bitcoin ETF by the end of May, it’s clear that institutional interest in Bitcoin has reached a new level.

Approximately 600 companies disclosed substantial Bitcoin ETF purchases in their recent 13F reports submitted to the US Securities and Exchange Commission (SEC) over the past week.

As a researcher studying the cryptocurrency market, I’ve come across an intriguing prediction from Bitwise’s Chief Investment Officer. By the end of May 15, they expect approximately 700 institutional investors to have allocated around $5 billion in the Bitcoin (BTC) spot Exchange-Traded Funds (ETFs). Based on the data available up to May 9, 563 professional investment firms reported holding $3.5 billion worth of these ETFs.

Some institutions and hedge funds included in the group are Morgan Stanley, JPMorgan, Wells Fargo, UBS, BNP Paribas, Royal Bank of Canada, Millennium Management, and Schonfeld Strategic Advisors.

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Millennium Management holds the largest stake among investors in Bitcoin Exchange-Traded Funds (ETFs), with a total investment of approximately $1.9 billion. This sum is allocated as follows: $844.2 million in BlackRock’s iShares BitCoin Trust (IBIT), $806.7 million in Fidelity’s WSFS Institutional Bitcoin Index Fund (FBTC), $202 million in Grayscale Bitcoin Trust (GBTC), $45.0 million in Ark Investment Management’s ARK Bitcoin ETF (ARKB), and $44.7 million in Bitwise Asset Management’s Bitwise Bitcoin Trust (BITB).

At approximately $13 billion in assets, Schonfeld Strategic Advisors ranks as the second largest investor in Bitcoin Exchange-Traded Funds (ETFs). They have allocated significant resources towards IBIT and FBTC, with investments amounting to $248 million and $231.8 million respectively. In total, their commitment to these funds adds up to a substantial investment of $479 million in Bitcoin ETFs.

As a crypto investor, I’d express it like this: I recently learned that Boothbay Fund Management, based in New York, disclosed having invested a substantial amount in Bitcoin Exchange-Traded Funds (ETFs). Specifically, they have allocated around $377 million in total. Among these, they hold approximately $149.8 million in IBIT, $105.5 million in FBTC, $69.5 million in GBTC, and $52.3 million in BITB.

Pine Ridge Advisers, based in New York City, disclosed a $205.8 million allocation to Bitcoin spot exchange-traded funds (ETFs). This investment consisted of $83.2 million in BlackRock’s iShares Bitcoin ETF (IBIT), $93.4 million in Fidelity’s Wise Origin Bitcoin Index Fund (FBTC), and $29.3 million in Bitwise Asset Management’s Bitwise Bitcoin ETF Trust (BITB).

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Morgan Stanley disclosed a significant investment of $269.9 million in Grayscale’s GBTC, making it one of the top investors in this particular product. Aristeia Capital LLC, an alternative investment firm, announced a sizable investment of $163.4 million in IBIT.

Connecticut’s Graham Capital Management revealed investments of $98.8 million in IBIT and $3.8 million in FBTC. CRCM L.P, an investment firm based in Louisiana, reported an investment of $96.6 million in IBIT. New York-based Fortress Investment Group LLC disclosed a $53.6 million investment in IBIT.

As a crypto investor, I’ve witnessed firsthand the immense interest in the newly launched spot Bitcoin exchange-traded fund (ETF) back in January. In the initial three months following its launch, demand for this ETF soared. However, over the past month, the inflows have noticeably decreased. Nonetheless, it’s important to note that despite the recent dip in inflows, an impressive number of financial institutions have announced their intentions to invest billions into the spot Bitcoin ETF.

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2024-05-16 14:36