In early 2024, the Bitcoin spot ETF was officially approved, marking the beginning of a new era in which traditional financial capital enters the crypto world. As of June 1, the global Bitcoin ETF holdings exceeded 1 million BTC, and as of June 14, the total net assets of the Bitcoin spot ETF reached approximately $57.2 billion.
According to the 13F report submitted to the SEC on May 15, which is a stockholding report of investment institutions with assets under management exceeding $100 million, there were a total of 929 institutions among the declared Bitcoin spot ETF positions in the first quarter of 2024. This accounts for less than 20% of the total market, and 80.7% of the spot ETF holders’ identities are unknown. The number of institutional holdings in the BTC spot ETF even exceeds that of gold ETFs. The disclosed asset amount has also reached trillions of dollars, revealing the significance of traditional finance in crypto assets.
Today, based on this report, Blockchain Simplified has compiled the holdings of the top three hedge funds, investment advisory firms, holding companies, and some well-known institutions in terms of Bitcoin ETF holdings.
1) State Government Investment Funds, Banks (over $100 million)
1. Wisconsin State Government Fund ($100 million)
The first state government fund in the United States to purchase Bitcoin spot ETFs, Wisconsin submitted a quarterly 13F report to the U.S. Securities and Exchange Commission (SEC), becoming the first state to disclose its purchase of Bitcoin. The information shows that Wisconsin purchased 94,562 shares of the BlackRock iShares Bitcoin Trust (IBIT) in the first quarter of this year, with these stocks valued at nearly $100 million. The investment committee also purchased shares of the Grayscale Bitcoin Trust (GBTC), valued at approximately $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 manages the assets of the Wisconsin Retirement System (WRS), the State Investment Fund (SIF), and other state trust funds.
2. U.S. Bancorp ($15 million)
U.S. Bancorp is a U.S. bank holding company and the parent company of U.S. Bank National Association, the fifth-largest bank in the United States, with over 3,000 branches primarily located in the western and midwestern United States. According to the latest 13F filing, the company’s total investment is $71.8 billion.
U.S. Bancorp holds over $15 million worth of Bitcoin spot ETF investments. It is reported that they 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., established in 2000, is a U.S. financial institution headquartered in New York City. Its commercial banking division has over 5,100 branches. In October 2011, JPMorgan Chase surpassed Bank of America to become the largest financial services institution in the United States. JPMorgan Chase operates in more than 50 countries, including investment banking, securities trading and services, investment 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 share.
2) 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 $1.9 billion
Among these large hedge fund buyers, Millennium Management is particularly noteworthy. Millennium Management is a well-known hedge fund established in 1989, located in New York City, and is one of the largest hedge funds globally.
The company holds five Bitcoin ETFs with a total value of approximately $1.9 billion. The holdings are as follows:
– BlackRock’s IBIT: $844.2 million
– Fidelity’s FBTC: $806.7 million
– Grayscale’s GBTC: $202 million
– 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 and points out that the company’s holdings are 200 times the average holdings of the top 500 new ETF holders. The market value of these Bitcoin ETF holdings accounts for approximately 3% of the hedge fund’s assets under management.
2. Schonfeld Strategic Advisors – Approximately $480 million
Schonfeld Strategic Advisors, established in 1988 and headquartered in New York, was founded by Steven Schonfeld. Schonfeld initially focused on proprietary trading and gradually evolved into a multi-strategy hedge fund management company, known for its diversified investment strategies and innovative investment methods. It manages assets worth $13 billion.
Currently, Schonfeld 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
Boothbay Fund Management is a hedge fund management company headquartered in New York, established in 2011 by Ari Glass, who also serves as the CEO. The company focuses on multi-strategy investments and utilizes diverse investment approaches to achieve stable returns.
Boothbay Fund Management’s investment in Bitcoin spot 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, Boothbay’s portfolio includes various ETFs such as the SPDR S&P 500 ETF Trust and iShares Russell 2000 ETF.
4. Bracebridge Capital – $340 million
Bracebridge Capital is a hedge fund management company headquartered in Boston, Massachusetts, established in 1994. Its investment portfolio covers various asset classes, including global stocks, bonds, foreign exchange, and futures. The company is known for its focus on global macro investment strategies, unique research methods, and in-depth market insights. Its investment decisions are typically based on a deep understanding of the global economy and financial markets, committed to providing excellent asset management services to institutional clients.
Currently, Bracebridge Capital holds $262 million worth of ARK 21Shares Bitcoin ETF and $81 million worth of BlackRock ETF.
5. Aristeia Capital LLC – $163.4 million
Aristeia Capital LLC is a well-known hedge fund and investment management company established in 1997, headquartered in the United States. The company specializes in diversified investment strategies, including trading stocks, bonds, derivatives, and other financial instruments. It is known for its excellent performance and strict risk management control, with a focus on long-term growth and outstanding performance in different market environments, committed to providing efficient investment management solutions for global clients.
Currently, Aristeia Capital LLC announced holdings of $163.4 million in IBIT investments.
6. Graham Capital Management – $98.8 million
Graham Capital Management is a well-known hedge fund management company in the United States, established in 1994, and headquartered in Connecticut. It was founded by renowned investment manager Kenneth Tropin.
As a leading hedge fund management company, Graham Capital Management focuses on using quantitative and systematic investment strategies to seek absolute returns in different market environments. It manages a large amount of capital globally and covers various asset classes, including stocks, bonds, commodities, and currencies. In addition to its outstanding investment performance, Graham Capital Management is known for its strict risk management and a high sense of responsibility for client interests.
Graham Capital Management holds $98.8 million in IBIT investments and $3.8 million in FBTC investments.
7. IvyRock Asset Management – $1.9 millionIvyRock Asset Management is a hedge fund management company based in Hong Kong that was established in 2009. Its main focus is on the Asian market, and it manages various funds through its asset management business. IvyRock Asset Management holds nearly $19 million worth of Grayscale’s Bitcoin ETF IBIT.
The group of investment consulting companies collectively holds a total of $3.8 billion in assets under management. Within the disclosed investment consulting management companies, Horizon Kinetics LLC holds the largest share. Horizon Kinetics LLC is an independent investment advisory firm founded in 1994 and headquartered in New York, USA. It manages assets with various investment strategies, including mutual funds, separate accounts, and alternative investments.
A notable characteristic 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, with the aim of capitalizing on 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 being the second-largest holder of GBTC (the first will be mentioned later, Susquehanna International Group).
Morgan Stanley, a globally renowned investment bank and wealth management company headquartered in New York, holds $270 million worth of Bitcoin ETF investments. The company was founded in 1935 and originated from the Morgan family, a financial giant in the United States. As one of the leading global financial services providers, Morgan Stanley’s range of services covers various areas, including corporate financing, mergers and acquisitions consulting, securities underwriting, asset management, wealth management, and investment banking. Morgan Stanley currently holds investments in the Bitcoin ETF totaling $269.9 million, all of which are invested in Grayscale’s GBTC, making it the third-largest holder of GBTC.
Pine Ridge Advisers, established in 2018 and headquartered in New York, is a well-known financial consulting company known for its expertise in wealth management, investment strategies, and financial planning. The company aims to provide personalized and comprehensive financial solutions to clients ranging from individual investors to corporations and institutions. Currently, Pine Ridge Advisers holds a total of $210.8 million worth of 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.
ARK Investment Management, founded and led by Cathie Wood, known as “Wood Sister,” is an investment company established in New York in 2014. It mainly focuses on theme-based 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 worth of ARK 21 Shares Bitcoin ETF, which is also one of Wood Sister’s companies among the first batch of 11 Bitcoin spot ETFs. Since the approval of the Bitcoin ETF, ARK Investment Management has been continuously purchasing, acting as both a producer and a consumer. Perhaps it aims to promote and expand the scale of the ETF through “self-purchase” to attract more investors.
Ovata Capital Management Ltd is an investment management company based in Hong Kong, established in 2017, and focuses on Asian stocks. Its investments are mainly 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 relevant news, Ovata’s funds rose by 10% last year, outperforming its peers, with a growth rate of 5.6% in the first four months of this year. Currently, Ovata Capital holds over $74 million worth of Bitcoin ETFs, including FBTC, GBTC, BITB, and IBIT (specific shares undisclosed).
Hightower Advisors is a well-known investment management company headquartered in Chicago, USA. The company provides a range of wealth management and investment solutions aimed at individual investors, family offices, wealth management firms, and institutional investors. Its clients mainly include high-net-worth individuals, family funds, charitable organizations, and corporate clients. Hightower holds over $68.34 million worth of US Bitcoin spot ETFs and manages a total capital of $122 billion. It 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, $1.7 million in ARK’s ARKB, $0.99 million in Bitwise’s BITB, and $0.79 million in Franklin’s EZBC.
Rubric Capital Management is an investment management company based in the United States, established in 2008. It specializes in 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 and achieving clients’ financial goals through portfolio construction and management. Rubric Capital Management currently holds over $60 million worth of BlackRock’s Bitcoin spot ETF.
In the category of holding companies, only one investor is significant, which is the parent company SIG Holdings, LLC of Susquehanna International Group. SIG, translated as “Haina International Group,” is a financial services company based in Bala Cynwyd, Pennsylvania, USA. It is known for its specialization and technological performance in the financial market and is considered one of the largest quantitative trading companies globally. The company was founded in 1987 by Jeff Yass, Arthur Dantchik, and Joel Greenberg. SIG operates globally, covering areas such as securities trading, options trading, futures trading, derivatives trading, asset management, and private equity investments. The company’s total investment scale is approximately $575.9 billion, and therefore, the Bitcoin ETF is only a small part of it. SIG holds nine Bitcoin spot ETFs, with a total amount of $1.31 billion. The largest amount is held in Grayscale’s GBTC, with a purchase of 17.27 million shares, valued at $1.09 billion, making it the largest holder of Grayscale GBTC.
In summary, on January 11, 2024, the U.S. Securities and Exchange Commission (SEC) approved the listing and trading of 11 Bitcoin spot ETFs on exchanges, which was considered a milestone event in the cryptocurrency market. The approval of Bitcoin ETFs and other cryptocurrency-related ETFs undoubtedly opens the door for traditional investors to enter this emerging market. Investing in Bitcoin through ETFs, which are regulated by the SEC, is relatively lower in risk compared to direct Bitcoin investments. Additionally, in the current international turmoil and the shadow of Federal Reserve interest rate cuts, Bitcoin spot ETFs are a good investment target for traditional financial institutions.
However, if, as stated in the 13F filings, disclosed holdings by large institutions account for only 20%, then who is buying the remaining over 80% of assets? Furthermore, with a significant influx of funds into these top financial products, will it lead to a lack of attention to new projects that may have otherwise attracted investment in the primary and secondary markets? Feel free to comment and share your views.
