Why Are Investors Throwing Money at Bitcoin ETFs Like It’s a Black Friday Sale? šŸ¤‘

What to know:

  • Institutional investors have decided that tripling their holdings of spot bitcoin ETFs in Q4 2024 is the new black, reaching a staggering $38.7B, according to SEC filings. šŸ’ø
  • Major funds, including Wisconsinā€™s pension board (because who doesnā€™t want to retire in style?) and Paul Tudor Jonesā€™ hedge fund, have significantly boosted their bitcoin ETF stakes. šŸ¦
  • BlackRockā€™s iShares Bitcoin Trust (IBIT) now boasts over 1,100 institutional holders, which is like a record-breaking party for first-year ETFs. šŸŽ‰

Bitcoin price may be as stable as a toddler on roller skates, but that hasnā€™t stopped the big boys from diving headfirst into the crypto pool. šŸŠā€ā™‚ļø

In the fourth quarter of 2024, large institutions like pensions and hedge funds decided that tripling their holdings of spot bitcoin exchange-traded funds (ETFs) was a great idea, according to the latest gossip from the SECā€™s 13F filings. šŸ“ˆ

Institutional investors splurged a jaw-dropping $38.7 billion on the spot bitcoin ETF, as reported by Bitwiseā€™s chief investment officer, Matt Hougan. Thatā€™s more than three times the previous quarterā€™s paltry $12.4 billion. Talk about a shopping spree! šŸ›’

Now, if you have assets over $100 million, the SEC requires you to report your holdings each quarter. Because, you know, transparency is keyā€”unless youā€™re hiding a secret stash of Bitcoin. šŸ¤«

Since the launch of bitcoin ETFs in January 2024, several hedge funds and pension funds have jumped on the bandwagon. The State of Wisconsinā€™s investment board, for instance, has upped its holdings to just over 6 million shares of BlackRockā€™s iShares Bitcoin Trust (IBIT) as of December 31. Thatā€™s a lot of cheese! šŸ§€

Meanwhile, billionaire hedge fund investor Paul Tudor has nearly doubled his stake in IBIT to 8,048,552 shares, up from 4,428,230. Corvex Management, founded by investor Keith Meister in December 2010, also disclosed holding over a million shares in IBIT at the end of Q4. Itā€™s like a game of who can hoard the most Bitcoin! šŸŽ®

According to Bloomberg Intelligenceā€™s senior ETF analyst Eric Balchunas, IBIT currently has 1,100 institutional holders that have reported their stake via 13F filings. He noted that most newly launched ETFs typically have fewer than 10 holders. So, whatā€™s the secret sauce here? šŸ”

ā€œNo way to track, but my guess is the record for first-year ETFs prior to this was probably around 350 institutional holders,ā€ Balchunas mused. Sounds like a challenge to me! šŸ†

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2025-02-19 19:30