Millennium Leads Wall Street Charge into Bitcoin ETFs

• Industry giant Millennium Management LLC holds nearly $2 billion across various spot Bitcoin ETFs launched earlier this year.
• Bitwise CIO, Matt Hougan, predicts the investor base for these ETFs could reach 700, a significant increase compared to typical launches.
• Hougan described the level of institutional interest as “unprecedented,” highlighting the growing acceptance of Bitcoin within traditional financial markets.

A surge of hedge funds and asset managers, including industry giant Millennium Management LLC, have poured in significant capital into the spot Bitcoin Exchange-Traded Funds (ETFs) approved in the United States earlier this year. The move underscores growing institutional interest in cryptocurrency, a once-niche asset class.

Millennium is king of the bitcoin ETF holders w/ about $2b across four ETFs. This is out of over 500 holders (about 200x the avg for new ETF). Majority are inv advisors (60%) but a big dose of HFs (25%). Never can be totally sure what HFs up to but they were def big buyers. pic.twitter.com/iVtVXjhId0

— Eric Balchunas (@EricBalchunas) May 15, 2024

According to regulatory filings analyzed by Bloomberg ETF analyst Eric Balchunas, New York-based Millennium Management disclosed holdings of nearly $2 billion across various Bitcoin ETFs as of March 31. These investments spanned:

BlackRock’s iShares Bitcoin Trust

The Grayscale Bitcoin Trust

Fidelity Wise Origin Bitcoin Fund

Bitwise Bitcoin ETF

ARK 21Shares Bitcoin ETF

Boston-based Bracebridge Capital, which manages investments for prestigious institutions like Yale and Princeton Universities, also entered the fray. They revealed ownership of $262 million in shares of the ARK 21Shares Bitcoin ETF and $81 million in the BlackRock product.

Even the Wisconsin Investment Board, overseeing assets for the state’s retirement system, joined the wave. They purchased over $99 million in BlackRock’s iShares Bitcoin Trust and hold more than $63 million in the Grayscale Bitcoin Trust.

Balchunas’ analysis of 13F filings for the first quarter suggests a staggering number of investors – over 500 – have flocked to the spot BTC ETFs. This represents more than 200 times the average number of investors for a newly launched exchange-traded fund. Notably, 60% of these holders are investment advisors, while hedge funds comprise 25%.

In a client memo posted on Bitwise’s platform , Chief Investment Officer Matt Hougan predicted the investor base could swell to 700, with total Assets Under Management (AUM) reaching $5 billion. Hougan described this level of investment as “unprecedented.”

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