Top US Hedge Funds Adopt Spot Bitcoin ETFs, 13 of 25 Invested: River Report

Last Updated: May 18, 2024 12:00 PM EDT | 2 minutes reading

Of the top 25 U.S. hedge funds, 13 entered the market by investing in ETFs during the first quarter.

Point72, the renowned hedge fund with $34 billion in assets under management, has revealed its investment in the Fidelity Wise Origin Bitcoin Fund (FBTC).

According to a recent filingPoint72 held $77.5 million in FBTC at the end of the first quarter.

The move follows a growing trend among several hedge funds that have disclosed their purchase of shares in spot Bitcoin exchange-traded funds.

Prominent hedge funds, including Paul Singer-led Elliott Capital and Izzy Englander-owned Millennium Management, have publicly shared their investments in these new funds.

Millennium Management is the largest holder of spot Bitcoin ETFs

Notably, Millennium Management remains the largest institutional holder of these funds, with approximately $2 billion invested as of March 31.

Other notable names among investors include Fortress Investment Group and Schonfeld Strategic Advisors.

While spot ETF purchases by these hedge funds can be seen as a long-term bet on potential Bitcoin price appreciation, it is important to note that these vehicles can serve other purposes as well.

Hedge funds can use them for market making, hedging strategies, income generation or even for short-term investments, among other reasons.

The growing involvement of major hedge funds in spot Bitcoin ETFs shows the growing acceptance and interest in cryptocurrencies in traditional finance.

Bitcoin will return to highs of US$74 thousand

Leading trading firm QCP Capital has expressed optimism about Bitcoin price dynamics, predicting a potential return to highs of $74,000.

In a recent note, the company said it observed substantial buyers purchasing 100,000 to 120,000 BTC calls for December 2024, indicating confidence in the cryptocurrency’s upward movement.

“US CPI numbers triggered a breakout in the risk asset range. Since then, BTC has traded above 66K,” the company wrote.

Similarly, technical analyst Rekt Capital believes that Bitcoin has emerged from post-halving “danger zone” and entered an accumulation phase, as indicated by weakening selling pressure.

“Bitcoin’s post-halving “danger zone” (purple) is officially over,” the popular cryptocurrency trader wrote in a recent post on X.

Despite the optimistic view of some analysts, Michael Novogratz, founder of Galaxy Digital Holdings, a leading digital asset financial services company, expects Bitcoin to remain in a relatively narrow trading range in the current quarter.

As reported, he expects Bitcoin to remain in the roughly $55,000 to $75,000 range until specific market events or circumstances drive prices higher.

Novogratz mentioned the tailwinds experienced in the fourth quarter of last year and the first quarter of this year.

“I think that’s probably where we’ll be this quarter, maybe next quarter until A, the Fed starts cutting rates because the economy finally slows down, or B, we get through the election and I think the election will bring clarity one way or another. the other, for the crypto regulatory landscape.”

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