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Bracebridge Capital Emerges as Signficant Holder of Bitcoin ETFs
Bracebridge Capital, a hedge fund based in Boston, has recently made headlines as one of the largest holders of spot Bitcoin ETFs. With holdings totaling hundreds of millions of dollars, the firm has substantial stakes in ETFs issued by BlackRock, Grayscale, and Ark Invest/21Shares. This surge in investments has caught the attention of industry experts, including renowned ETF Analyst Eric Balchunas.
Unveiling Bracebridge Capital’s Bitcoin Exposure
According to Balchunas, Bracebridge Capital’s exposure to Bitcoin ETFs has reached a staggering $363 million. This figure includes investments in BlackRock ($81 million), Grayscale ($20 million), and Ark Invest/21Shares ($262 million) ETFs. Balchunas noted that Bracebridge Capital’s holdings set a new standard in the market, excluding market makers and authorized participants.
Founded in 1994, Bracebridge Capital manages approximately $12 billion in assets under management. Considered the largest woman-run hedge fund globally in 2016, the firm boasts a prestigious client base, which includes the endowments of prestigious universities such as Princeton and Yale. The firm’s secretive nature and consistent success have attracted significant investor interest over the years.
SEC Filing Reveals Extensive Bitcoin Holdings
A recent filing with the Securities and Exchange Commission (SEC) shed light on Bracebridge Capital’s Bitcoin ETF holdings, valued at $434 million in March. Notably, the firm’s investments exclude options and reflect a snapshot of its U.S. traded equities during the first quarter when Bitcoin’s price hovered around $72,000.
Among Bracebridge Capital’s notable holdings are $300 million in Ark Invest and 21Shares’ Bitcoin ETF, $100 million in BlackRock’s Bitcoin ETF, and $26.5 million in Grayscale’s Bitcoin Trust. The firm’s substantial exposure to these ETFs positions it as a key player in the ever-evolving Bitcoin market.
Implications for the Market
Since the approval of spot Bitcoin ETFs in the U.S. earlier this year, Wall Street entities have poured a total of $11.6 billion into these instruments. Bracebridge Capital’s sizable investments, along with those of other major institutions like Wells Fargo, underscore the growing importance of cryptocurrencies in traditional investment portfolios. As the market continues to mature, the role of Bitcoin ETFs is expected to expand further, attracting a diverse range of investors.
Despite the significant holdings and market impact of Bracebridge Capital, the firm has opted to maintain a low profile regarding its Bitcoin ETF investments. However, its strategic positioning and substantial stake in prominent ETFs signal its confidence in the long-term potential of cryptocurrencies.
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Chris Jones
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