Last updated on May 18th, 2024 at 12:44 pm
Millennium Management has become the largest holder of Bitcoin ETFs, including the iShares Bitcoin Trust (IBIT) and Fidelity Wise Origin Bitcoin Fund (FBTC). The company’s recent SEC filing reveals a significant investment of nearly $2 billion, which represents about 3% of its $64 billion fund.
Significant Investment in Major Bitcoin ETFs
The SEC filing shows Millennium Management’s substantial investment in Bitcoin ETFs. The firm has allocated $844,181,820 to BlackRock’s iShares Bitcoin Trust, marking it as the largest single holding. Following closely is the Fidelity Wise Origin Bitcoin Fund, which has received $806,640,303 from Millennium.
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Millennium has also invested $202,029,915 in the Grayscale Bitcoin Trust. Additionally, the company has placed smaller yet significant amounts in the ARK 21Shares Bitcoin ETF and Bitwise Bitcoin ETF, with investments of $45,001,320 and $44,737,805, respectively. This strategic diversification demonstrates Millennium’s confidence in Bitcoin as an asset class and its commitment to spreading risk.
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Institutional Interest in Bitcoin ETFs Rises
Millennium Management’s bold move into Bitcoin ETFs highlights a growing trend of institutional interest in these investment vehicles. Other financial institutions, such as Boothbay Fund Management and the State of Wisconsin Investment Board, have also shown considerable interest in Bitcoin ETFs. Boothbay Fund Management has invested $377 million across various Bitcoin ETFs, while the Wisconsin board has committed nearly $162 million to BlackRock’s IBIT and Grayscale’s GBTC.
The increasing investments from these institutions signify a broader acceptance of Bitcoin ETFs. This trend is further supported by entries from Hightower Advisors, SouthState Bank, and major corporations like JPMorgan Chase into the Bitcoin ETF market. These moves indicate a growing confidence in Bitcoin ETFs as viable investment options.
Bitcoin Price Movements and Market Sentiment
The surge in Bitcoin ETF investments coincides with significant price movements in Bitcoin itself. Recently, Bitcoin’s price climbed to $66,000, reflecting a 7% increase in just 24 hours. This price surge is linked to the latest U.S. Consumer Price Index (CPI) data, which shows a decrease in core inflation.
The decrease in core inflation has positively influenced investor sentiment towards digital assets, positioning Bitcoin as a potential hedge against economic instability. This correlation between inflation data and Bitcoin price movements highlights the growing interplay between traditional financial metrics and digital asset markets.
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