13F Filings Report 701 Hedge Funds Increase Positions in Bitcoin ETFs

• The total number of hedge funds holding Bitcoin ETFs has reached 1,950, with 701 funds newly added to the list.
• Millennium Management remains the top contender, although it has reduced its position in FBTC, IBIT, and GBTC.
• Noelle Acheson comments that the growing demand for ETFs is encouraging, considering the bear market.

A Bloomberg report has revealed that the number of hedge funds holding Bitcoin exchange-traded funds (ETFs) has grown to 1,950, with 701 new funds adding spot Bitcoin ETFs to their holdings. Top buyers include Millennium Management, Capula Investment Management, Schonfeld Strategic Advisors, and Steven Cohen’s Point72 Asset Management.

The Securities and Exchange Commission (SEC) approved 11 asset managers’ applications to launch their Bitcoin ETFs in January 2024. Since then, there has been a growing interest in Bitcoin ETFs amidst the highly volatile crypto market. While the ETF launch and its subsequent developments have significantly impacted the market, with Bitcoin reaching a new all-time high (ATH) of $73K in March, hedge funds and banks started investing in the ETFs.

Following the final submission of the 13F reports on Wednesday, a burgeoning demand for Bitcoin ETFs among hedge funds in the second quarter has been identified. Millennium Management, the top contender of the rally, which currently owns $68 billion in assets under management, has made significant adjustments in its ETF portfolio. While the fund has reduced its position in Bitcoin ETFs, including Fidelity’s FBTC, BlackRock’s IBIT, and Grayscale’s GBTC, it has increased holdings in Bitwise’s BITB and MicroStrategy’s MSTR. Once hailed the “king of bitcoin ETF holders,” the platform remains the largest holder of most of the funds.

Another significant buyer of the ETFs was Hunting Hill Global Capital, a hedge fund that has reportedly been involved in the crypto space since 2016. In its 13F filing, the firm reported holdings in IBIT shares and highlighted the significance of ETF market expansion.

Analyzing the current trends in Bitcoin ETFs, Noelle Acheson, author of the “Crypto Is Macro Now” newsletter, commented that the demand for Bitcoin ETFs is encouraging, given the prevailing bearish crypto market. She added that although Bitcoin dropped by nearly 13% in the quarter, not many financial advisors were able to recommend ETFs to their clients.