In a significant move within the cryptocurrency investment landscape, Millennium Management, a leading American hedge fund, has allocated nearly $2 billion to various Bitcoin spot ETFs (Exchange-Traded Funds). This strategic investment was detailed in the 13F quarterly report filed with the U.S. Securities and Exchange Commission (SEC) for the first quarter of 2024.
Millennium Management, managed by billionaire Izzy Englander and boasting assets over $64 billion, has diversified its portfolio by purchasing shares in five distinct Bitcoin spot ETFs:
- ARK 21Shares Bitcoin ETF (ARKB)
- Bitwise Bitcoin ETF (BITB)
- Grayscale Bitcoin Trust (GBTC)
- iShares Bitcoin Trust (IBIT)
- Fidelity Wise Origin Bitcoin ETF (FBTC)
The firm invested $844 million in the iShares Bitcoin Trust managed by BlackRock and an additional $800 million in Fidelity’s Wise Origin Bitcoin ETF. Shares of the Grayscale Bitcoin Trust were also acquired for approximately $202 million. Meanwhile, smaller stakes were taken in ARKB and BITB.
Following the publication of the report, Eric Balchunas, an analyst at Bloomberg, lauded Millennium Management as the "king among owners of Bitcoin spot ETF shares." This statement underscores the hedge fund's dominant position in the market segment.
The quarterly report reveals a broader trend of increasing institutional interest in cryptocurrencies. Other major hedge funds like Elliott Capital and Apollo Management Holdings have also made notable investments in Bitcoin spot ETFs. Elliott Capital disclosed a nearly $12 million stake in IBIT, while Apollo Management Holdings reported acquiring $53.2 million worth of ARKB shares.
Matt Hougan, the Chief Investment Officer at Bitwise Asset Management, commented on the significance of these disclosures in 13F reports, noting that they provide critical insights into who is actually buying Bitcoin-based funds. According to Hougan, the growing interest from institutional investors is a positive sign for Bitcoin, indicating a robust future for the cryptocurrency.
Additionally, the State of Wisconsin Investment Board (SWIB) was reported to have invested $163 million in Bitcoin spot ETFs managed by BlackRock and Grayscale Investments. This move further highlights the growing institutional backing for Bitcoin as a viable investment asset, despite its volatility and the complex regulatory environment surrounding cryptocurrencies.
This substantial investment by Millennium Management not only positions the hedge fund as a major player in the Bitcoin ETF market but also signals a more significant shift towards the acceptance of cryptocurrencies in mainstream institutional investment portfolios. As more funds and financial entities explore and enter the cryptocurrency space, the landscape of investment, particularly in Bitcoin, is expected to evolve considerably, potentially leading to greater stability and wider acceptance of this digital asset class.
