Author: Huo Huo, Blockchain in Plain Language
In early 2024, the Bitcoin spot ETF was officially approved, marking the beginning of a new era where traditional financial capital flows into the crypto world. As of June 1st, global Bitcoin ETF holdings exceeded 1 million BTC, with the total net asset value of Bitcoin spot ETF reaching approximately $57.2 billion as of June 14th.
According to the Bitcoin ETF 13F filings submitted to the SEC by May 15th (13F reports refer to holdings reports of investment institutions with assets under management exceeding $100 million in US stock companies), in the first quarter of 2024, a total of 929 institutions declared their positions in Bitcoin spot ETFs. This accounted for less than 20% of the total market share, with 80.7% of spot ETF holders remaining unidentified. The number of institutional holders in BTC spot ETFs even surpassed gold ETFs, with disclosed asset amounts reaching trillions of dollars, highlighting the growing importance of traditional finance towards crypto assets.
Today, based on this filing, Blockchain in Plain Language has compiled the top three hedge funds, investment advisory firms, holding companies, and some renowned institutions’ positions in Bitcoin ETF holdings.
01
State Government Investment Funds, Banks (Over $100 million)
1) Wisconsin State Investment Fund ($100 million)
The first state government fund to purchase Bitcoin spot ETF, Wisconsin State submitted a quarterly 13F report to the SEC, becoming the first state to disclose its Bitcoin purchases. Information revealed that Wisconsin State purchased 94,562 shares of the BlackRock iShares Bitcoin Trust (IBIT) in the first quarter of this year, valued at nearly $100 million. The investment committee also acquired shares of the Grayscale Bitcoin Trust (GBTC) worth around $64 million.
The investment committee, also known as SWIB, was established in 1951 and currently manages over $156 billion in assets according to its website. It oversees assets of the Wisconsin Retirement System (WRS), State Investment Fund (SIF), and other state trust funds.
2) US Bancorp ($15 million)
US Bancorp is a US bank holding company and the parent company of the US Bank National Association, the fifth-largest bank in the US with over 3,000 branches primarily located in the western and midwestern regions. According to the latest 13F filing, the company’s total investments amount to $71.8 billion.
US Bancorp holds over $15 million worth of Bitcoin spot ETF investments. It purchased approximately 87,744 shares of Fidelity’s FBTC stock valued at $5.4 million, 46,011 shares of Grayscale’s GBTC stock valued at $2.9 million, and 178,567 shares of BlackRock’s IBIT stock valued at $7.2 million.
3) JPMorgan Chase & Co. (Approximately $1 million)
JPMorgan Chase & Co., founded in 2000, is a US financial institution headquartered in New York City with 5,100 branches under its commercial banking division. In October 2011, JPMorgan Chase surpassed Bank of America to become the largest financial services institution in the US. Its operations span over 50 countries, including investment banking, securities trading and services, asset management, commercial banking services, and private banking services.
Currently, JPMorgan Chase holds approximately $1 million worth of ProShares BITO, BlackRock IBIT, Fidelity FBTC, Grayscale GBTC, and Bitwise BITB market shares.
02
Hedge Funds ($4.7 billion)
The largest category in Bitcoin spot ETFs is hedge funds, accounting for 8.0% of the total ETF holdings, approximately $4.7 billion.
1) Millennium Management – Approximately $19 billion
Among these prominent hedge funds, Millennium Management stands out. Founded in 1989 by Israel Englander in New York City, Millennium Management is one of the largest hedge funds globally.
The company holds five Bitcoin ETFs with a total value of around $19 billion. The holdings are as follows:
– BlackRock’s IBIT: $8.442 billion
– Fidelity’s FBTC: $8.067 billion
– Grayscale’s GBTC: $2.02 billion
– Ark’s ARKB: $45 million
– Bitwise’s BITB: $44.7 million
Bloomberg ETF analyst Eric Balchunas describes Millennium as the “king” of Bitcoin ETF holders, noting that the company’s holdings are 200 times the average holdings of the top 500 new ETF holders, and the market value of these Bitcoin ETF holdings represents approximately 3% of the hedge fund’s assets under management.
2) Schonfeld Strategic Advisors – Approximately $4.8 billion
Founded in 1988 by Steven Schonfeld in New York, Schonfeld Strategic Advisors initially focused on proprietary trading and later evolved into a multi-strategy hedge fund management company known for its diversified investment strategies and innovative approaches, managing assets worth $13 billion.
Currently, Schonfeld holds a total of $4.79 billion in BTC ETFs, with $2.48 billion in IBIT and $2.318 billion in FBTC.
3) Boothbay Fund Management – $3.8 billion
Established in 2011 in New York by Ari Glass, Boothbay Fund Management is a hedge fund management company specializing in multi-strategy investments to achieve stable returns.
Boothbay Fund Management’s investment in Bitcoin ETFs amounts to $3.77 billion, including $1.498 billion in IBIT, $1.055 billion in FBTC, $69.5 million in GBTC, and $52.3 million in BITB.
In addition to Bitcoin ETF investments, Boothbay’s portfolio includes various ETFs such as the SPDR S&P 500 ETF Trust and iShares Russell 2000 ETF.
4) Bracebridge Capital – $3.4 billion
Bracebridge Capital is a hedge fund management company headquartered in Boston, United States, founded in 1994. Its portfolio covers various asset classes suchAsset Management is a hedge fund management company based in Hong Kong, established in 2009, with a primary focus on the Asian markets, managing various funds through its asset management business.
IvyRock Asset Management holds nearly $19 million in the spot Bitcoin ETF IBIT from BlackRock.
Investment advisory firms hold a total of $3.8 billion in assets under management.
1) Horizon Kinetics LLC $946 million
Among the disclosed investment advisory management companies, Horizon Kinetics LLC holds the largest share. The company is an independent investment advisory firm founded in 1994, headquartered in New York, managing assets across various investment strategies, including mutual funds, separate accounts, and alternative investments.
A notable feature of Horizon Kinetics is its emphasis on non-traditional and less efficient markets. The company often seeks opportunities that are undervalued or misunderstood by the market, such as small-cap stocks, international stocks, and niche industries, aiming to profit from long-term trends and market inefficiencies.
Horizon Kinetics LLC holds a total of $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 mentioned later).
2) Morgan Stanley $270 million
Morgan Stanley is a globally renowned investment bank and wealth management company headquartered in New York, founded in 1935, originating from the American financial giant Morgan family. As one of the leading global financial services providers, its services cover various areas, including corporate finance, mergers and acquisitions advisory, securities underwriting, asset management, wealth management, and investment banking operations. Morgan Stanley currently holds $269.9 million in Bitcoin ETF investments, all invested in Grayscale’s GBTC, making it the third-largest holder of GBTC.
3) Pine Ridge Advisers $210 million
Established in 2018 and headquartered in New York, Pine Ridge Advisers is a well-known financial advisory company, renowned for its expertise in wealth management, investment strategies, and financial planning. The company aims to provide personalized and comprehensive financial solutions to clients across various sectors, from individual investors to corporations and institutions.
Currently, Pine Ridge Advisers holds a total of $205.8 million in Bitcoin spot ETFs, including $83.2 million in BlackRock’s IBIT, $93.4 million in Fidelity’s FBTC, and $29.3 million in Bitwise’s BITB.
4) ARK Investment Management $206 million
ARK Investment Management, founded and led by “Queen of Wood” Cathie Wood in New York in 2014, primarily focuses on thematic investments based on innovative technologies such as computer technology, energy innovation, and financial technology. Several funds under ARK Investment Management focus on these themes.
ARK Investment Management holds $206 million in ARK 21 Shares Bitcoin ETF, one of Cathie Wood’s companies among the first batch of 11 Bitcoin spot ETFs. Since the approval of Bitcoin ETFs, ARK Investment Management has been continuously purchasing, possibly to increase the ETF’s size to attract more investors.
5) Ovata Capital Management Ltd ($74 million)
Ovata Capital is an investment management company based in Hong Kong, established in 2017, focusing on Asian stocks with investments concentrated in four core strategies: arbitrage, relative value, event-driven, and long-short. Ovata’s portfolio manager, Jon Lowry, previously worked at Millennium Management and Elliott Management Corp. According to reports, Ovata’s fund rose by 10% last year, outperforming peers, with a 5.6% increase in the first four months of this year.
Currently, Ovata Capital holds Bitcoin ETFs worth over $74 million, including FBTC, GBTC, BITB, and IBIT (specific amounts undisclosed).
6) Hightower Advisors $68.34 million
Hightower is a well-known investment management company based in Chicago, providing a range of wealth management and investment solutions for individual investors, family offices, wealth management firms, and institutional investors. Their clients mainly consist of high-net-worth individuals, family funds, charitable organizations, and corporate clients.
Hightower holds over $68.34 million in the US Bitcoin spot ETF, managing a total of $122 billion in assets and currently holding positions in six Bitcoin spot ETFs, including:
– $44.84 million in Grayscale GBTC
– $12.41 million in Fidelity FBTC
– $7.62 million in BlackRock IBIT
– $1.70 million in ARKB
– $0.99 million in Bitwise BITB
– $0.79 million in Franklin EZBC
7) Rubric Capital Management $60 million
Rubric Capital Management is an investment management company based in the US, founded in 2008. It focuses on long-term investments in global stock markets and is known for its in-depth research and highly specialized investment approach. Its investment strategies mainly include fundamental analysis, quantitative analysis, and market research. The company’s team is dedicated to discovering companies with potential and long-term growth prospects, achieving clients’ financial goals through portfolio construction and management.
Currently, Rubric Capital Management holds over $60 million in BlackRock Bitcoin spot ETF.
In summary, on January 11, 2024, the US Securities and Exchange Commission (SEC) approved the listing of 11 Bitcoin spot ETFs on exchanges, considered 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.
As ETFs listed on exchanges are regulated by the SEC, investing in Bitcoin through ETFs carries lower risks compared to direct Bitcoin investments. Moreover, in the current international turmoil and the shadow of the Fed’s interest rate cuts, Bitcoin spot ETFs are seen as a better investment target for traditional financial institutions.
However, as revealed in the 13F filings, only 20% of disclosed holdings from major institutions account for billions of dollars, leaving over 80% of assets acquired by unknown entities. With a large influx of funds into these top financial products, there may be a lack of attention towards new projects in primary and secondary markets. Share your thoughts in the comments section.
