In early 2024, the Bitcoin spot ETF was officially approved, marking the dawn of traditional financial capital pouring into the crypto world. As of June 1, global Bitcoin ETF holdings exceeded 1 million BTC. By June 14, the total net assets of Bitcoin spot ETFs reached approximately $57.2 billion.
The Bitcoin ETF 13F filings submitted to the SEC by May 15 revealed significant institutional participation. In the first quarter of 2024, 929 institutions disclosed their positions in Bitcoin spot ETFs, comprising less than 20% of the total market. Notably, 80.7% of spot ETF holders remained unidentified. The disclosed asset amounts have already surpassed trillions, highlighting traditional finance’s growing interest in crypto assets.
Today, focusing on this document, Blockchain Plainly presents insights into the top three hedge funds, investment advisory firms, holding companies, and notable institutions by Bitcoin ETF holdings.
State Government Investment Funds, Banks (over $100 million)
1) Wisconsin State Investment Fund ($100 million)
Wisconsin became the first U.S. state government fund to purchase a Bitcoin spot ETF. According to the SEC’s quarterly 13F report, Wisconsin acquired 94,562 shares of the BlackRock iShares Bitcoin Trust (IBIT) in Q1 2024, valued at nearly $100 million. The State of Wisconsin Investment Board (SWIB), established in 1951, currently manages assets exceeding $156 billion, including the Wisconsin Retirement System (WRS), State Investment Fund (SIF), and other state trust funds.
2) U.S. Bancorp ($15 million)
U.S. Bancorp, a U.S. bank holding company and the parent of U.S. Bank National Association, one of the country’s largest banks with over 3,000 branches primarily in the western and midwestern United States. Their latest 13F filing indicated total investments of $71.8 billion. U.S. Bancorp holds over $15 million in Bitcoin spot ETF investments, including approximately 87,744 shares of Fidelity’s FBTC, valued at $5.4 million, 46,011 shares of Grayscale’s GBTC, valued at $2.9 million, and 178,567 shares of BlackRock’s IBIT, valued at $7.2 million.
3) JPMorgan Chase & Co. (about $10 million)
Founded in 2000, JPMorgan Chase & Co. is a New York City-based American financial institution with a network of over 5,100 branches under its commercial banking division. In October 2011, JPMorgan surpassed Bank of America to become the largest financial services firm in the United States. JPMorgan holds approximately $10 million worth of ProShares BITO, BlackRock IBIT, Fidelity FBTC, Grayscale GBTC, and Bitwise BITB shares.
Hedge Funds ($470 million)
The largest category within Bitcoin spot ETFs is hedge funds, accounting for 8.0% of total spot ETF holdings, approximately $4.7 billion.
1) Millennium Management – Approximately $1.9 billion
Among these prominent hedge funds, Millennium Management stands out. Founded in 1989 by Israeli-American financier Israel Englander and headquartered in New York City, Millennium Management is one of the world’s largest hedge funds. The firm holds positions in five Bitcoin ETFs, totaling approximately $1.9 billion, with holdings in:
– BlackRock’s IBIT: $844.2 million
– Fidelity’s FBTC: $806.7 million
– Grayscale’s GBTC: $202.0 million
– Ark’s ARKB: $45.0 million
– Bitwise’s BITB: $44.7 million
Bloomberg ETF analyst Eric Balchunas describes Millennium as the “king” of Bitcoin ETF holders, with holdings roughly 200 times larger than the average top 500 new ETF holders. These Bitcoin ETF holdings represent about 3% of the hedge fund’s assets under management.
2) Schonfeld Strategic Advisors – Approximately $480 million
Founded in 1988 and headquartered in New York City, Schonfeld Strategic Advisors was established by Steven Schonfeld. Initially focused on proprietary trading, Schonfeld gradually evolved into a multi-strategy hedge fund management firm, renowned for its diversified investment strategies and innovative approaches. Schonfeld currently holds a total of $479 million in BTC ETFs, including $248 million in IBIT and $231.8 million in FBTC.
3) Boothbay Fund Management – $380 million
Founded in 2011 and headquartered in New York, Boothbay Fund Management focuses on multi-strategy investments, utilizing diversified investment approaches to achieve stable returns. Boothbay Fund Management’s investment in Bitcoin ETFs amounts to $377 million, including $149.8 million in IBIT, $105.5 million in FBTC, $69.5 million in GBTC, and $52.3 million in BITB. In addition to Bitcoin ETF investments, their portfolio includes various ETFs such as SPDR S&P 500 ETF Trust and iShares Russell 2000 ETF.
4) Bracebridge Capital – $340 million
Founded in 1994 and headquartered in Boston, Bracebridge Capital is a prominent hedge fund management company specializing in global equities, bonds, foreign exchange, futures, and other asset classes. Known for its focus on global macro investment strategies, unique research methods, and deep market insights, Bracebridge Capital currently holds $262 million in ARK 21 Shares Bitcoin ETF and $81 million in BlackRock ETF.
5) Aristeia Capital LLC – $163.4 million
Established in 1997 and headquartered in the United States, Aristeia Capital LLC is a renowned hedge fund and investment management company specializing in diversified investment strategies, including equities, bonds, derivatives, and other financial instruments. Known for its excellent performance and rigorous risk management, Aristeia Capital LLC announced holdings of $163.4 million in IBIT investments.
6) Graham Capital Management – $98.8 million
Founded in 1994 and headquartered in Connecticut, Graham Capital Management is a well-known hedge fund management company specializing in quantitative and systematic investment strategies to seek absolute returns across different market environments globally. In addition to outstanding investment performance, Graham Capital Management is renowned for its strict risk management and high sense of responsibility to clients. Graham Capital Management holds $98.8 million in IBIT investments and $38 million in FBTC investments.
7) IvyRock Asset Management – $19 millionCertainly! Here’s a creative rephrasing of the article:
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In the heart of Hong Kong, IvyRock Asset Management, a hedge fund firm founded in 2009, centers its operations on the Asian markets, specializing in managing various funds through its asset management services.
IvyRock Asset Management holds nearly $190 million in Bitcoin spot ETF IBIT from BlackRock.
The collective assets under management of investment advisory firms amount to $3.8 billion.
1) Leading the disclosed investment advisory firms is Horizon Kinetics LLC, with assets totaling $946 million. Established in 1994 and headquartered in New York, Horizon Kinetics is an independent investment advisor managing assets across various investment strategies including mutual funds, separate accounts, and alternative investments.
Horizon Kinetics stands out for its focus on non-traditional and less efficient markets, often seeking opportunities undervalued or misunderstood by the market, such as small-cap stocks, international equities, and niche industries, aiming to profit from long-term trends and market inefficiencies.
Horizon Kinetics LLC exclusively holds $946 million in Grayscale’s GBTC, ranking first among investment advisory firms, and is the second-largest holder of GBTC (the first being Susquehanna International Group, as mentioned later).
2) Morgan Stanley, a globally renowned investment bank and wealth management firm headquartered in New York and founded in 1935 by the Morgan family, covers a broad spectrum of financial services including corporate finance, mergers and acquisitions advisory, securities underwriting, asset management, wealth management, and investment banking.
Currently, Morgan Stanley holds investments worth $270 million in Bitcoin ETFs, entirely invested in Grayscale’s GBTC, making it the third-largest holder of GBTC.
3) Pine Ridge Advisers, established in 2018 and based in New York, is a prominent financial advisory firm known for its expertise in wealth management, investment strategies, and financial planning. The company aims to provide personalized and comprehensive financial solutions to a diverse clientele ranging from individual investors to corporate and institutional entities.
Pine Ridge Advisers currently holds over $210 million in Bitcoin spot ETFs, with holdings in BlackRock’s IBIT worth $83.2 million, Fidelity’s FBTC $93.4 million, and Bitwise’s BITB $29.3 million.
4) ARK Investment Management, founded and led by Cathie Wood, known as “Wood Sister,” is an investment firm established in 2014 in New York. It primarily focuses on theme-based investments in innovative technologies such as computer technology, energy innovation, and financial technology. Several funds under ARK Investment Management concentrate on these themes.
ARK Investment Management holds $206 million in ARK 21 Shares Bitcoin ETF. Since the approval of Bitcoin ETFs, ARK Investment Management has actively purchased them, potentially boosting the ETF’s scale and attractiveness to investors.
5) Ovata Capital Management Ltd. ($74 million)
Ovata Capital, headquartered in Hong Kong and established in 2017, specializes in Asian stocks, focusing on arbitrage, relative value, event-driven, and long-short strategies. Ovata’s portfolio manager, Jon Lowry, formerly associated with Millennium Management and Elliott Management Corp, reported a 10% increase in the fund’s value last year, outperforming peers, with a 5.6% increase in the first four months of this year.
Currently, Ovata Capital Management holds over $74 million in Bitcoin ETFs, including FBTC, GBTC, BITB, and IBIT (specific share amounts undisclosed).
6) Hightower Advisors ($68.34 million)
Hightower, a renowned investment management company based in Chicago, offers a range of wealth management and investment solutions tailored to individual investors, family offices, wealth management firms, and institutional investors. Their clientele primarily includes high-net-worth individuals, family foundations, charitable organizations, and corporate clients.
Hightower holds over $68.34 million in U.S. Bitcoin spot ETFs. With total assets under management of $122 billion, the company currently holds positions in six Bitcoin spot ETFs, including:
– $44.84 million in Grayscale’s GBTC;
– $12.41 million in Fidelity’s FBTC;
– $7.62 million in BlackRock’s IBIT;
– $1.70 million in ARKB;
– $0.99 million in Bitwise’s BITB;
– $0.79 million in Franklin’s EZBC.
7) Rubric Capital Management ($60 million)
Rubric Capital Management, founded in 2008 and based in the United States, specializes in long-term investments in global stock markets, renowned for its in-depth research and highly specialized investment approach. Its investment strategies primarily involve fundamental analysis, quantitative analysis, and market research. The company’s team focuses on identifying promising companies with potential for long-term growth, achieving clients’ financial goals through portfolio construction and management.
Rubric Capital Management currently holds over $60 million in BlackRock’s Bitcoin spot ETF.
Holding company: $1.35 billion
Susquehanna International Group ($1.1 billion)
In the holding company category, Susquehanna International Group’s parent company, SIG Holdings, LLC, stands out as the most significant investor. Known as SIG, it is a financial services firm based in Bala Cynwyd, Pennsylvania, recognized for its specialization and technological prowess in financial markets, considered one of the world’s largest quantitative trading firms. Founded in 1987 by Jeff Yass, Arthur Dantchik, and Joel Greenberg, SIG operates globally, engaging in securities trading, options trading, futures trading, derivatives trading, asset management, and private equity investments, with total invested assets of approximately $575.9 billion. Thus, Bitcoin ETFs represent only a small fraction of its operations.
SIG holds nine Bitcoin spot ETFs valued at $1.31 billion, with its largest holding being $1.09 billion in Grayscale’s GBTC, purchasing a total of 17.27 million shares, making it the largest holder of Grayscale GBTC.
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Summary
On January 11, 2024, the U.S. Securities and Exchange Commission (SEC) approved the listing of 11 Bitcoin spot ETFs on exchanges, marking a milestone event in the digital currency market. The approval of Bitcoin ETFs and other cryptocurrency-related ETFs undoubtedly opens the door for traditional investors to enter this emerging market.
Since ETFs listed on exchanges are regulated by the SEC, investing in Bitcoin through ETFs carries lower risks compared to direct investments in Bitcoin. Moreover, amidst global economic uncertainties and Federal Reserve rate cuts, Bitcoin spot ETFs present a favorable investment option for traditional financial institutions.
However, with disclosed holdings from major institutional investors totaling just 20% of assets as per 13F filings, questions remain about the remaining 80% of assets and their origins. As substantial funds flow into these leading financial products, it may divert attention away from primary and secondary markets, potentially leading to neglect of new projects. Your thoughts and comments on this are welcome.
