Tech
Millennium Management reveals its $2 billion Bitcoin ETF holdings
Millennium Management, an international hedge fund, recently revealed its substantial investment in Bitcoin exchange-traded funds (ETFs). It disclosed a stake close to $2 billion in the first quarter of 2024.
According to its 13F filing with the SEC, Millennium has committed $1.94 billion into five separate BTC spot ETFs as of March 31, 2024.
Millennium Management Bitcoin ETF Holdings Revealed
The hedge fund has diversified its investments across various spot Bitcoin ETF products, including Bitwise Bitcoin ETF, ARK 21Shares Bitcoin ETF, iShares Bitcoin Trust, Grayscale Bitcoin Trust and Fidelity Wise Origin Bitcoin ETF.
Among these, BlackRock’s Bitcoin fund emerged as Millennium’s largest allocation, with investments exceeding $844 million. This figure was followed closely by the Fidelity fund, with holdings exceeding $806 million.
In a May 16 X post, Bloomberg ETF analyst Eric Balchunas dubbed Millennium the King of BTC ETFs. The analyst revealed that Millennium’s assets are 200 times higher than the average of new ETFs among more than 500 holders.
Millennium is the king of bitcoin ETF holders with around $2 billion in four ETFs. This is over 500 holders (about 200 times the average for the new ETF). The majority are financial advisors (60%), but a large dose of HF (25%). I can never be entirely sure what HF are doing, but they sure were big buyers. pic.twitter.com/iVtVXjhId0
— Eric Balchunas (@EricBalchunas) May 15, 2024
According to Balchuna, the majority (about 60%) of new ETF investors are investment advisory firms, while hedge funds account for about 25%.
Meanwhile, the increased transparency resulting from mandatory 13F reporting has caught the attention of industry experts. Matt Hougan, chief investment officer at Bitwise, sees this development positively and expresses growing optimism about Bitcoin’s prospects.
This increased visibility into investing in Bitcoin ETFs suggests broader acceptance and interest in digital assets. This could position the sector above financial institutions and traditional investors as it continues to influence future market dynamics.
In a recent memorandum to investors on May 13, Hougan highlighted the importance of quarterly 13F filings, which provide valuable information about the investors behind the various funds.
He highlighted the notable presence of institutional investors in BTC ETFs, highlighting critical firms such as Bracebridge Capital, Hightower Advisors and Cambridge Investment Research among investors in Bitcoin products.
Anticipating further growth, Hougan predicted that by the May 15 application deadline, over 700 professional firms could be revealed as BTC ETF holders. He added that this possibility could bring total assets under management (AUM) to nearly $5 billion.
Other organizations acquiring Bitcoin
A May 14 report from the State of Wisconsin revealed its significant investment in the cryptocurrency market. According to the report, it has secured a total investment of $164 million in two funds offered by BlackRock and Grayscale.
MicroStrategy (MSTR), led by its CEO and avid Bitcoin advocate Michael Saylor, also took courage acquired 12,000 Bitcoin in March. The purchase was made using $782 million raised through a convertible debt offering.
With this acquisition, MicroStrategy’s BTC holdings rose to 205,000 BTC, valued at $14.7 billion.
Michael Saylor revealed the details of the purchase, noting that each Bitcoin was purchased at an average price of approximately $68,477. This means that the company spent approximately $821.7 million on this batch of digital gold.
Notably, the organization did not rely solely on the funds raised from the debt offering to make this purchase. They also tapped into existing cash reserves. This move positions MicroStrategy as a significant player in the digital assets market.
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