Millennium Management reveals $2 billion in Bitcoin ETF holdings

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Global asset manager Millennium Management revealed on May 16 that it holds about $2 billion in spot Bitcoin exchange-traded funds (ETFs), constituting about 3% of its $64 billion total funds under management. This disclosure shows the firm’s substantial investment in cryptocurrency assets as part of its diverse portfolio.

Millennium Management Holdings Spans Across Five Different Spot Bitcoin ETF products

Millennium Management’s latest 13F filing with the SEC reveals that it has invested across five key spot Bitcoin ETFs as of March 31. These ETFs include ARK 21Shares Bitcoin ETF (ARKB), Bitwise Bitcoin ETF (BITB), Grayscale Bitcoin Trust (GBTC), iShares Bitcoin Trust (IBIT), and Fidelity Wise Origin Bitcoin ETF (FBTC).

Among these investments, BlackRock’s Bitcoin fund stands out as the largest allocation, with over $844 million invested, followed closely by Fidelity’s fund, which holds just over $806 million worth of FBTC shares.

Millennium also has large holdings in the Grayscale Bitcoin Trust, totaling $202,029,915, with some investments in ARK 21Shares Bitcoin ETF and Bitwise Bitcoin ETF, amounting to $45,001,320 and $44,737,805, respectively.

This strategic diversification across various spot Bitcoin ETFs helps to mitigate risks while reflecting Millennium’s bullish stance on Bitcoin as an asset class.

Bloomberg ETF analyst Eric Balchunas described Millennium Management as the “king” of Bitcoin ETF holders, noting that the firm holds 200 times the exposure of the average new ETF holder in the top 500.

While Millennium leads a $2 billion investment, Bracebridge Capital and the State of Wisconsin’s investment board have also made major investments in this space. In contrast, Elliott Capital and Apollo Management Holdings have disclosed smaller investments in various Bitcoin ETFs, with stakes totaling nearly $12 million and $53.2 million, respectively.

Spot Bitcoin ETFs Allocation Drives Positive Market Trajectory Insight

In a recent memo to investors, Bitwise’s Chief Investment Officer (CIO) Matt Hougan expressed growing optimism about Bitcoin’s future due to the flurry of 13F filings. He noted that the investment trend in Bitcoin ETFs is rapidly gaining momentum, with unprecedented levels of institutional ownership for a new ETF.

Traditionally, most ETFs experience minimal participation from large investors in their initial months.

For example, the launch of the gold ETF in late 2004 was considered highly successful, amassing over $1 billion in its first five days. However, even at its first 13F filing, only 95 professional firms held positions in the gold ETF. In contrast, Bitcoin ETFs are having a historic surge in the number of institutional investors involved.

While professional investors currently hold an estimated 20% of total Bitcoin ETF assets, retail investors still dominate the landscape.

However, Hougan suggested that these early institutional allocations could be just the beginning as institutional engagement deepens.

“The allocations we see in recent 13F filings are just a down payment. Hightower Advisors may have $68 million allocated to bitcoin ETFs today, for instance, which is great, but it’s just 0.05% of their assets. If they follow the pattern outlined above, that allocation will build over time. And to put it in context, a 1% allocation of their portfolio to Bitcoin would equate to $1.2 billion—all from a single firm,” Hougan explained.

Hougan highlighted that these quarterly filings had provided important insights into the actual buyers of these funds and reiterated that institutional interests in these products bode well for Bitcoin’s trajectory in the future, even as experts like Robert Kiyosaki has advocated for an increased investment in Bitcoin.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.