Major hedge funds have increased their Bitcoin ETF holdings, with 60% of the top 25 hedge funds now owning a stake in these digital assets. This trend signals a growing acceptance of cryptocurrencies among institutional investors.
Data shows that these hedge funds, including major players like Citadel, Millennium, and G.S. Asset Management, are increasingly incorporating Bitcoin ETFs into their investment strategies.
Millennium Management currently has the largest position, holding 27,263 BTC in its ETF portfolio, after adding 1,429 BTC during the second quarter of 2024. G.S. Asset Management and Schonfeld Strategic Advisors also hold significant positions, with 6,202 BTC and 6,734 BTC, respectively. Interestingly, G.S. Asset Management acquired its entire position in Q2 2024.
Other funds, such as Mariner Investment Group and Elliot Investment Management, have also increased their Bitcoin ETF holdings. Mariner added 493 BTC, while Elliot bought 924 BTC over the quarter.
This trend among institutional investors, including hedge funds, pensions, and banks, allocating capital towards Bitcoin ETFs has grown substantially, especially since traditional investors have become more open to digital assets. Favorable US regulatory developments earlier in the year supported this shift, though with some caution.
Millennium Management, one of the most active participants, reported holdings in at least five Bitcoin ETFs, based on a Bloomberg analysis of second-quarter filings with the US Securities and Exchange Commission. Even though it reduced its stakes from the previous quarter, the firm remains a top holder in several funds, including BlackRock’s iShares Bitcoin Trust.
Other firms such as Capula Investment Management, Schonfeld Strategic Advisors, and Point72 Asset Management have also reported stakes in Bitcoin ETFs. Additionally, institutional buyers now span diverse entities, from the State of Wisconsin Investment Board to market makers operating across various regions, including Hong Kong, the Cayman Islands, Canada, and Switzerland.
However, not all major hedge funds have jumped on board. Bridgewater Associates, AQR Capital Management, and Verition Fund Management haven’t reported any exposure to these assets. The presence of Bitcoin ETFs within hedge fund portfolios reflects the growing institutional interest in digital assets. That said, the pace and degree of this adoption still varies considerably across the industry.