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Large Investments in Spot Bitcoin ETFs by Traditional Financial Firms
Recently, Millennium Management and Schonfeld Strategic Advisors disclosed significant investments in spot Bitcoin ETFs, rendering them among the largest investments to date by traditional financial firms. These disclosures were made in their 13F filings for the first quarter of the year. This move indicates a noteworthy transition in the investment landscape towards digital assets.
Millennium Management’s Investments
Millennium Management made a substantial total investment of $1.9 billion in spot Bitcoin ETFs. This investment is divided among various ETFs, with $844.2 million in BlackRock’s IBIT, $806.7 million in Fidelity’s FBTC, $202 million in Grayscale’s GBTC, $45.0 million in Ark’s ARKB, and $44.7 million in Bitwise’s BITB.
Schonfeld Strategic Advisors’ Investments
Schonfeld Strategic Advisors also made significant investments in the spot Bitcoin ETF space. They disclosed a $248.0 million investment in IBIT and a $231.8 million investment in FBTC, totaling $479 million. This places them among the notable investors in this rapidly growing market.
Largest IBIT Holders
According to Fintel data, both Millennium Management and Schonfeld Strategic Advisors hold the largest investments in IBIT and FBTC. Millennium Management leads the pack in both categories, with Schonfeld coming in second. Furthermore, Millennium Management features prominently among the top 10 holders for other spot Bitcoin ETF investments, showcasing their commitment to this emerging asset class.
The size of these investments is especially noteworthy as it signifies a significant shift in institutional interest towards Bitcoin ETFs. With Millennium Management managing $69 billion in assets under management (AUM) and Schonfeld overseeing $13 billion in AUM, their foray into the digital asset realm carries substantial weight and credibility.
Filing Deadline and Other Disclosures
Both companies disclosed their investments on the cusp of the filing deadline, which fell on May 15 for 13F filings. Several other firms, such as Aristeia Capital, Boothbay Fund Management, and Pine Ridge, also revealed sizable investments in IBIT and other related funds around the same time. Additionally, Morgan Stanley disclosed its investment in GBTC, further solidifying the participation of major financial institutions in the spot Bitcoin ETF space.
Leading up to the deadline, Bitwise CIO Matt Hougan estimated that over 700 professional companies would invest close to $5 billion by the cutoff date. However, Hougan highlights that retail investment still plays a significant role in the total assets of spot Bitcoin ETFs.
As of now, the combined assets under management of all available spot Bitcoin ETFs stand at $53 billion, with cumulative inflows amounting to $12 billion. These figures underscore the increasing appetite for digital assets among institutional and retail investors alike, paving the way for further growth and innovation in the cryptocurrency space.
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