Millennium Management Dominates Bitcoin ETF Landscape with $2 Billion Investment
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The post Millennium Management Dominates Bitcoin ETF Landscape with $2 Billion Investment appeared first on Coinpedia Fintech News
Millennium Management LLC enjoys unparalleled dominance in the Bitcoin ETF market. With up to $2 billion dispersed across multiple portfolios, letās examine Millenniumās methodology to understand how it has managed to accumulate such a significant holding of Bitcoin ETFs.
Millenniumās Strategic Investments in Bitcoin ETFs
Under the leadership of billionaire Izzy Englander, Millennium Management has set a new standard for institutional investment in Bitcoin ETFs.Ā
As of March 31, 2024, Millennium has invested approximately $2 billion across multiple Bitcoin-related ETFs, including prominent stakes in BlackRockās iShares Bitcoin Trust and Fidelityās Wise Origin Bitcoin Fund. Out of these, the largest holdings include $844 million in BlackRockās iShares Bitcoin Trust, over $800 million in the Fidelity Wise Origin Bitcoin Fund, and $202 million in Grayscaleās Bitcoin Trust.Ā
Millennium has also made significant investments in the ARK/21Shares Bitcoin ETF and Bitwiseās Bitcoin ETF.
Eric Balchunas, a senior ETF analyst for Bloomberg, highlighted the scale of Millenniumās involvement on X, stating, āMillennium 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%).ā
Industry Perspective
According to Morningstar Direct, institutional investorsā adoption of Bitcoin ETFs has dramatically increased since January, currently amounting to around $29 billion.Ā
While Millennium has taken the lead with its hefty $2 billion investment, Bracebridge Capital and the State of Wisconsinās investment board have also made notable investments into this space.
Conversely, Elliott Capital and Apollo Management Holdings have disclosed smaller investments in various Bitcoin ETFs, with stakes amounting to nearly $12 million and $53.2 million, respectively.
Impact on Bitcoinās Market Dynamics
One of the key factors contributing to Bitcoinās significant surge this year is institutional investorsā massive influx into Bitcoin ETFs.Ā
Matt Hougan, Bitwiseās Chief Investment Officer, noted on X, āBy the time all the filings are processed, they will show that as many as 700 institutions own $5 billion or more in the new ETFs,ā expressing optimism about the growth of the Bitcoin ETF industry.
Millennium has adopted an aggressive strategy by diversifying its investments across multiple ETFs. As a result, it will enhance its exposure to potential gains and mitigate risks.Ā
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