As a crypto investor with a background in quantitative analysis and experience following institutional investors’ moves, I find Susquehanna’s entry into Bitcoin ETFs an intriguing development. The firm’s significant investment in GBTC, FBTC, and BITO underscores their belief in the potential of digital assets as part of a diversified portfolio.
In the first quarter of 2024, it came to light that Susquehanna International Group, a leading quantitative trading company, had made investments in Bitcoin exchange-traded funds (ETFs).
Based on a May 7th filing with the Securities and Exchange Commission (SEC), the firm revealed that it held over a billion dollars’ worth of exchange-traded funds (ETFs) in its portfolio.
Susquehanna’s Crypto Portfolio
On March 31, 2024, Susquehanna reportedly held 17,271,326 shares in the Grayscale Bitcoin Trust (GBTC), amounting to a market value of around $1.09 billion, as indicated in their filing submitted to the Securities and Exchange Commission.
I analyzed the financial report and identified that the firm held approximately 1.35 million shares of Fidelity Wise Origin Bitcoin Fund (FBTC), with a total value estimated around $83.74 million as of the specified date.
Susquehanna disclosed that it increased its stake in the ProShares Bitcoin Strategy ETF (BITO). According to data from investment research firm Fintel, the firm owned 7,907,827 shares of BITO as of March 31, valued at approximately $255.42 million. This marked an increase of 57.59% from a previous filing in February, which listed 5,021,149 shares.
As a crypto investor following Susquehanna’s moves, I’ve noticed that they significantly reduced their holdings in MicroStrategy (MSTR) during their latest portfolio adjustments. The number of their shares in this tech company went down from approximately 287,180 in February to around 244,863 as of March 31st.
At the close of the initial quarter, Susquehanna’s cryptocurrency assets represented a modest segment of their total investment portfolio, valued at more than $575.8 billion. Based on Fintel’s data, this conglomerate’s investments encompassed a variety of holdings, such as NVIDIA Corporation and the SPDR S&P 500 ETF Trust.
In the previous quarter, Susquehanna expanded its investment holdings by purchasing shares of Convertible Zero, securing bonds issued by NRG Energy Inc., and obtaining preferred stocks with Albemarle Corporation.
As a crypto investor, I’d interpret that statement as follows: The company, being Susquehanna, has a track record of employing derivatives, with a focus on call and put options. At present, they have call options for 796,600 shares worth around $25 million and put options for 4,606,300 shares valued at roughly $148 million.
TradFi Turns to Bitcoin ETFs
As a crypto investor, I’ve noticed an increasing number of trading firms and financial advisors opting for Bitcoin ETFs (Exchange-Traded Funds) to gain exposure to digital assets in their portfolios. This trend reflects the growing acceptance and mainstream adoption of cryptocurrencies within traditional finance.
In the month of April, two established financial advisory firms, Legacy Wealth Management and United Capital Management of Kansas, collectively invested $40 million in Fidelity’s Bitcoin Exchanged-Traded Fund (ETF), with each firm contributing $20 million.
Two advisors have recently invested significant amounts into the Bitcoin ETF FBTC, with one hailing from Kansas and the other from Minnesota. Their investments amount to $20 million and $20 million respectively, representing 6% and 5% of their portfolios respectively. This surpasses the previous investment of $17 million made by an advisor into IBIT.
— Eric Balchunas (@EricBalchunas) April 23, 2024
In a recent post on X, Bloomberg’s Balchunas described the growing trend toward cryptocurrency investment among conventional financial institutions as a clear sign of increasing acceptance in the mainstream investor community. He playfully labeled this phenomenon as “as traditional or Boomer as it gets,” drawing specific attention to United Capital Management of Kansas.
He sees great potential in this for those who advocate for long-term adoption, but there is contrasting skepticism from certain sectors of the financial industry.
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2024-05-08 14:15