Millennium Management Discloses Nearly $2B Worth of Bitcoin ETFs in Q1 2021
Summary:
Millennium Management, an international hedge fund, disclosed holdings of nearly $2 billion in Bitcoin (BTC) spot exchange-traded-funds (ETFs) by Q1 2021. The fund diversified its Bitcoin ETF products across five ETFs with the largest allocation in BlackRock’s Bitcoin fund at over $844 million. Approximately 60% of new spot Bitcoin ETF purchasers are investment advisory firms, with hedge funds making up about 25%. These revelations have heightened optimism among industry observers for Bitcoin's future.
Millennium Management, a global hedge fund, has disclosed that as of Q1 2021 it owned nearly $2 billion in Bitcoin (BTC) spot exchange-traded-funds (ETFs). As per its mandated 13F filing with the U.S. Securities and Exchange Commission, Millennium had allocated $1.94 billion across five prime Bitcoin ETFs as of March 31. The fund's Bitcoin ETF assets were diversified among five ETFs: ARK 21Shares Bitcoin ETF (ARKB), Bitwise Bitcoin ETF (BITB), Grayscale Bitcoin Trust (GBTC), iShares Bitcoin Trust (IBIT), and Fidelity Wise Origin Bitcoin ETF (FBTC).
BlackRock's Bitcoin fund held the lion's share of Millennium's portfolio, with investments totaling more than $844 million. Closely following was Fidelity's fund, with the hedge fund holding just above $806 million in FBTC shares.
Eric Balchunas, an ETF analyst at Bloomberg, described Millennium as the leader of Bitcoin ETF owners, holding 200 times more than the average of new ETF owners among the top 500. According to Balchunas, about 60% of new spot Bitcoin ETF purchasers were investment advisory companies, while 25% were hedge funds.
The recent series of mandatory 13F filings has revealed the entities purchasing spot Bitcoin ETFs. Bitwise's chief investment officer, Matt Hougan, noted that this has made him more optimistic about Bitcoin's future prospects.
“The significant revelation is the high number of professional investors possessing Bitcoin ETFs,” Hougan noted in a memo to investors on May 13. He highlighted the involvement of companies like Hightower Advisors, Bracebridge Capital, and Cambridge Investment Research in owning Bitcoin products. Hougan projects that by the May 15 filing deadline, there could be upward of 700 professional firms owning Bitcoin ETFs, with a total asset under management close to $5 billion. On May 14, The State of Wisconsin indicated that it held a total investment of $164 million spread across two funds offered by Grayscale and BlackRock.
Published At
5/16/2024 8:22:44 AM
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