Top U.S. Hedge Funds Embrace Spot Bitcoin ETFs, 13 of 25 Invested: River Report

Out of the top 25 hedge funds in the United States, 13 have entered the market by investing in the ETFs during the first quarter.

Point72, the renowned hedge fund with $34 billion in assets under management, has revealed its investment in the Fidelity Wise Origin Bitcoin Fund (FBTC).

According to a recent filing , Point72 held $77.5 million worth of FBTC at the end of the first quarter.

The move follows a growing trend among various hedge funds that have disclosed their purchase of shares in spot Bitcoin exchange-traded funds.

Prominent hedge funds, including Elliott Capital led by Paul Singer and Millennium Management owned by Izzy Englander, have publicly shared their investments in these new funds.

Millennium Management is Largest Holder of Spot Bitcoin ETFs

Notably, Millennium Management stands as the largest institutional holder of these funds, with approximately $2 billion invested as of March 31.

Other notable names among the investors include Fortress Investment Group and Schonfeld Strategic Advisors.

While these hedge funds’ purchases of spot ETFs may be seen as a long-term bet on the potential price appreciation of Bitcoin, it’s important to note that these vehicles can serve other purposes as well.

Hedge funds may utilize them for market making, hedging strategies, generating yield, or even for short-term flipping, among other reasons.

The increasing involvement of top hedge funds in spot Bitcoin ETFs speaks to the growing acceptance and interest in cryptocurrencies within traditional finance.

Bitcoin to Return to $74K Highs

Leading trading firm QCP Capital has expressed optimism about Bitcoin’s price momentum, forecasting a potential return to the highs of $74,000 .

In a recent note, the firm said it has observed substantial buyers acquiring 100,000 to 120,000 BTC Calls for December 2024, indicating confidence in the upward movement of the cryptocurrency.

“US CPI numbers triggered a break out of the range across risk assets. BTC has since traded back above 66k,” the firm wrote.

Likewise, technical analyst Rekt Capital believes that Bitcoin has emerged from the post-halving  “danger zone” and entered an accumulation phase, as indicated by weakening selling pressure.

“The Post-Halving Bitcoin “Danger Zone” (purple) is officially over,” the popular crypto trader wrote in a recent post on X.

Despite the bullish view from some analysts, Michael Novogratz, the founder of Galaxy Digital Holdings, a prominent digital-asset financial services firm, expects Bitcoin to remain in a relatively narrow trading range  in the current quarter.

As reported, he expects Bitcoin to remain within the range of approximately $55,000 to $75,000 until specific market events or circumstances push the prices higher.

Novogratz mentioned the tailwinds experienced in the fourth quarter of the previous year and the first quarter of this year.

“I think that is probably where we are certainly for this quarter, maybe next quarter until either A, the Fed starts cutting rates because the economy finally slows or B, we get through the election and I think the election will bring clarity one way or the other to the crypto regulatory landscape.”