Millennium Management Reveals its Bitcoin ETF Holdings of $2 Billion

Millennium Management Reveals its Bitcoin ETF Holdings of $2 Billion

Millennium Management, an international hedge fund, recently disclosed its substantial investment in spot Bitcoin exchange-traded funds (ETFs). It revealed a holding close to $2 billion as of the first quarter of 2024. 

According to its 13F filing with the SEC, Millennium has allocated $1.94 billion to five distinct spot BTC ETFs as of March 31, 2024.

Millennium Management’s Bitcoin ETF Holdings Revealed

The hedge fund diversified its investment across various spot Bitcoin ETF products, including the Bitwise Bitcoin ETF, the ARK 21Shares Bitcoin ETF, the iShares Bitcoin Trust, the Grayscale Bitcoin Trust, and the Fidelity Wise Origin Bitcoin ETF.

Among these, BlackRock’s Bitcoin fund emerged as Millennium’s largest allocation, with investments surpassing $844 million. This figure was closely followed by Fidelity’s fund, with holdings exceeding $806 million.

In a May 16 X post, Bloomberg’s ETF analyst, Eric Balchunas, dubbed Millennium the King of BTC ETFs. The analyst revealed that Millennium’s holdings are 200 times the average for new ETFs out of over 500 holders.

Millennium is king of the bitcoin ETF holders w/ about $2b across four ETFs. This is out of over 500 holders (about 200x the avg for new ETF). Majority are inv advisors (60%) but a big dose of HFs (25%). Never can be totally sure what HFs up to but they were def big buyers.

— Eric Balchunas (@EricBalchunas) May 15, 2024

According to Balchuna, most (about 60%) new ETF investors are investment advisory firms, while hedge funds comprise around 25%.

Meanwhile, the increased transparency resulting from mandatory 13F filings has garnered attention from industry experts. Matt Hougan, chief investment officer at Bitwise, views this development positively and expresses growing optimism about Bitcoin’s prospects.

This heightened visibility into Bitcoin ETF investment suggests a broader acceptance and interest in digital assets. This could position the industry above traditional financial institutions and investors as it continues to influence future market dynamics.

In a recent memo to investors dated May 13, Hougan emphasized the significance of quarterly 13F filings, which provide valuable insights into the investors behind various funds.

He highlighted the notable presence of institutional investors in BTC ETFs, pointing out critical firms like Bracebridge Capital, Hightower Advisors, and Cambridge Investment Research among the investors in Bitcoin products.

Anticipating further growth, Hougan predicted that by the May 15 filing deadline, over 700 professional firms could be revealed as holders of BTC ETFs. He added that such a possibility could drive the 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 crypto market. According to the report, it achieved a total investment of $164 million in two funds offered by BlackRock and Grayscale.

Also, MicroStrategy (MSTR), led by its CEO and avid Bitcoin supporter Michael Saylor, boldly acquired 12,000 Bitcoins in March. The purchase was made using the $782 million they raised through a convertible debt offering.

With this acquisition, MicroStrategy’s BTC holdings soared to 205,000 BTC, valued at $14.7 billion.

Michael Saylor revealed the details of the purchase, noting that each Bitcoin was acquired at an average price of around $68,477. This means the company spent approximately $821.7 million on this batch of digital gold.

Notably, the organization didn’t just rely on the funds raised from the debt offering to make this purchase. They also dipped into their existing cash reserves. This move positions MicroStrategy as a significant player in the digital asset market.

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