Saba Capital, an investment advisor and hedge fund with $10 billion in assets under management, has added bitcoin to their Saba Capital Income & Opportunities Fund.
The fund in question aims to provide “a high level of current income… by investing globally in debt and equity securities of public and private companies, which includes investing in registered closed-end funds and special purpose acquisition companies (“SPAC”).”
They sort of invest in everything, with their holdings breakdown having stocks, bonds, warrants, loans, SPACs and bitcoin.
They have 108,000 shares of the Grayscale Bitcoin Trust (GBTC) valued at $1.3 million according to their letter to shareholders for the new year.
The fund itself has about half a billion dollars in assets under management, with this being the third general fund that has added bitcoin.
Blackrock is adding the crypto asset to their Global Allocation Fund which aims to provide exposure to the growth of the global economy.
While the Morgan Stanley Europe Opportunity Fund revealed in a filing it bought $3.6 million worth of GBTC, now worth $1 million, with the fund aiming to provide exposure to the European economy.
This addition of bitcoin to broad based funds is a very new development that provides passive exposure to the asset.
In the case of Saba Capital, they say “Saba’s investors are predominately institutions and include corporate pensions, public pensions, foundations, fund of funds, endowments, and family offices.”
That’s pretty much the biggest market in the world outside of central banks themselves, with it only now starting to gain some exposure to bitcoin.
It’s in small amounts, but that’s potentially because they’re only now starting out as no such fund held bitcoin prior to 2020-21.
This market may well therefore grow for bitcoin, and for now it seems to be only bitcoin, with its passive nature potentially allowing for a steady stream of new capital which may stabilize the price compared to previously if it reaches a reasonable scale.
Source: https://www.trustnodes.com/2023/01/09/saba-capital-fund-holds-bitcoin