701 funds on board! Hedge funds continue betting on Bitcoin ETFs in Q2, with Millennium, Capula, and Point72 all holding positions
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701 funds on board! Hedge funds continue betting on Bitcoin ETFs in Q2, with Millennium, Capula, and Point72 all holding positions
Bitcoin prices fell nearly 13% in the second quarter. Holdings filings show that funds holding spot Bitcoin ETFs added another 701 positions. Millennium reduced its holdings in these ETFs during Q2 but still holds at least five ETFs and remains the largest holder in most of them, including BlackRock's IBIT.
Navigating Web3 tides with focused insightsBy Li Dan
Source: Wall Street Horizon
Regulatory filings show that in the second quarter of this year, hedge funds, pension funds, and banks continued to pour significant capital into spot bitcoin exchange-traded funds (ETFs)—a product category that only began trading in January—as more traditional investors embrace bitcoin as an asset class.
An analysis of recent 13F filings with the U.S. Securities and Exchange Commission (SEC) reveals that well-known hedge fund buyers of spot bitcoin ETFs include Millennium Management, Capula Investment Management, Schonfeld Strategic Advisors, and Point72 Asset Management, led by veteran hedge fund investor Steven Cohen. Besides hedge funds, buyers also include the Wisconsin Investment Board, which manages the retirement system and investment fund for the U.S. state of Wisconsin, along with market makers based in Hong Kong, the Cayman Islands, Canada, and Switzerland.
Millennium Management, which oversees $68 billion in assets, held at least five spot bitcoin ETFs during the quarter, including BlackRock’s iShares Bitcoin Trust (IBIT). The firm reduced its IBIT holdings by 48% quarter-on-quarter in Q2, leaving it with a value of approximately $371 million at quarter-end. It cut its positions in two other ETFs—Grayscale Bitcoin Trust (GBTC), formerly a trust converted into an ETF, and Fidelity Wise Origin Bitcoin ETF (FBTC), co-launched by Fidelity—by 52% and 14%, respectively. Despite these substantial reductions, Millennium remains one of the largest holders across most bitcoin ETFs, according to media reports.
13F filings indicate that Capula Investment Management held spot bitcoin ETFs valued at around $464 million in Q2, including approximately $253 million in IBIT and $211 million in FBTC.
As of Wednesday, August 14—the SEC’s 13F filing deadline—there were 701 additional funds reporting ownership in spot bitcoin ETFs, bringing the total number of funds holding such ETFs to nearly 1,950, according to media calculations.
Notably, these fund purchases occurred even as bitcoin prices declined nearly 13% during the second quarter. Noelle Acheson, author of the crypto and macro analysis newsletter "Crypto Is Macro Now," commented that the growing number of holders is particularly encouraging given bitcoin’s weak price performance and the fact that few financial advisors are currently permitted to recommend bitcoin ETFs to clients.
TechFlow previously reported that the approval of 11 spot bitcoin ETFs in January marked a lowering of barriers for bitcoin investment, offering investors a more convenient and cost-effective route. Despite ongoing market volatility, exchange failures, and criticism from heavyweight figures in finance, bitcoin’s resilience has been validated by the market. Responding to client demand, Morgan Stanley made Wall Street history this month by becoming the first major bank to allow its financial advisors to promote bitcoin ETFs. Starting August 7, about 15,000 Morgan Stanley advisors have been authorized to recommend IBIT and FBTC to clients.
Media estimates suggest that since their launch in January, spot bitcoin ETFs have attracted a cumulative net inflow of $17 billion, enabling IBIT’s assets to grow to $20 billion. By both flows and asset management metrics, these bitcoin ETFs have outperformed expectations.
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