Inventory of the top holdings of Bitcoin ETFs: Who are the large investors in holdings?

Original author: Huohuo

In early 2024, Bitcoin Spot ETF officially passed, ushering in the first year of traditional financial capital pouring into the encryption world. As of June 1st, the global Bitcoin ETF holdings exceeded 1 million BTC. As of June 14th, the total net asset value of Bitcoin Spot ETF reached approximately $57.2 billion.

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In the Bitcoin ETF 13 F (13 F report refers to the holding report of investment institutions with assets under management exceeding 100 million US dollars for US stocks) filed with the SEC by May 15th, it is shown that in the first quarter of 2024, among all declared Bitcoin spot ETF positions, there are a total of 929 institutions, which accounts for less than 20% of the total market, and 80.7% of the spot ETF holders are unidentified. The number of institutional holdings of BTC spot ETF even exceeds that of gold ETF, and the disclosed assets amount has reached trillions of dollars, which reflects the importance of encryption assets in traditional finance.

Today, with this document, Blockchain Plain Language will sort out the holdings of the top three hedging funds, investment consulting companies and holding companies of Bitcoin ETF, as well as some well-known institutions.

State Government Investment Fund, Banks (over 100 million US dollars)

1) Wisconsin State Government Fund (100 million US dollars)

The state government fund of Wisconsin, the first in the United States to purchase Bitcoin spot ETF, has submitted a quarterly 13F report to the Securities and Exchange Commission (SEC), making it the first state to disclose its purchase of Bitcoin. The information shows that Wisconsin purchased 94,562 shares of the BlackRock iShares Bitcoin Trust (IBIT) in the first quarter of this year, with a value of nearly $100 million. The investment committee also purchased shares of the Grayscale Bitcoin Trust (GBTC) worth approximately $64 million.

The State of Wisconsin Investment Board (SWIB), established in 1951, currently manages over $156 billion in assets, according to its website. It oversees the assets of the Wisconsin Retirement System (WRS), State Investment Fund (SIF), and other state trust funds.

2) Bank of America ($15 million)

U.S. Bancorp is an American bank holding company and the parent company of U.S. Bank National Association, the fifth-largest bank in the United States, with over 3,000 branches primarily located in the Western and Midwestern regions. According to the latest 13F filing, the company's total investments amount to $71.8 billion.

Bank of America holds a spot Bitcoin ETF investment worth over 15 million US dollars. It is reported that it has purchased approximately 87744 shares of Fidelity's FBTC stock, worth 5.4 million US dollars, 46011 shares of Grayscale's GBTC stock, worth 2.9 million US dollars, and 178567 shares of BlackRock's IBIT stock, worth 7.2 million US dollars.

3) JPMorgan Chase & Co. (about 1 million dollars)

JPMorgan Chase & Co., founded in 2000, is a US financial institution headquartered in New York City. It has 5,100 branches under its commercial banking division. In October 2011, JPMorgan Chase surpassed Bank of America to become the largest financial services institution in the United States in terms of assets. JPMorgan Chase operates in more than 50 countries, including investment banking, securities trading and services, investment management, commercial financial services, private banking services, etc.

Currently, JPMorgan holds market share in ProShares BITO, BlackRock IBIT, Fidelity FBTC, Grayscale GBTC and Bitwise BITB with a total value of approximately $1,000,000.

Hedging Fund $4.7 billion

The largest category in Bitcoin spot ETFs is hedge funds, accounting for 8.0% of the total holdings of spot ETFs, or about 4.7 billion US dollars.

1) Millennium Management approximately $1.9 billion

Among these large hedge fund buyers, Millennium Management is particularly notable. Millennium Management is a well-known hedge fund, founded in 1989 and based in New York City, founded by Israeli-American financier Israel Englander, and is currently one of the largest hedge funds in the world.

The company holds five Bitcoin ETFs with a total value of approximately 1.9 billion US dollars. The holdings are as follows:

• Blackrock's IBIT is $844.2 million;
• FTX's FBTC is 8.067 billion US dollars;
• Grayscale's GBTC is worth 202 million US dollars;
• Ark's ARKB $45 million;
• Bitwise's BITB $44.70 million.

Bloomberg ETF analyst Eric Balchunas describes Millennium as the 'king' of Bitcoin ETF holders, noting that the company's holdings are 200 times the average holdings of the top 500 new ETF holders, and the market value of these Bitcoin ETF holdings represents about 3% of the assets under management of the hedge fund.

2) Schonfeld Strategic Advisors about 4.8 billion US dollars

Schonfeld Strategic Advisors was established in 1988, headquartered in New York, founded by Steven Schonfeld. Schonfeld was initially a proprietary trading company, and later evolved into a multi-strategy hedge fund management company, known for its diversified investment strategies and innovative investment methods, with Assets Under Management reaching 13 billion dollars.

Currently, Schonfeld holds a total of 4.79 billion US dollars in BTC ETF, with IBIT at 2.48 billion US dollars and FBTC at 2.318 billion US dollars.

3) Boothbay Fund Management $380 million

Boothbay Fund Management is a hedge fund management company based in New York, founded in 2011 by Ari Glass, who also serves as the president. The company focuses on multi-strategy investments and utilizes diversified investment approaches to achieve stable returns.

Boothbay Fund Management's investment in spot Bitcoin ETF is $377 million, including $149.8 million in IBIT, $105.5 million in FBTC, $69.5 million in GBTC, and $52.3 million in BITB.

In addition to BTC ETF investments, Boothbay's investment portfolio also includes a variety of ETFs, such as SPDR S&P 500 ETF Trust and iShares Russell 2000 ETF.

4) Bracebridge Capital $340 million

Bracebridge Capital is a hedge fund management company headquartered in Boston, USA, founded in 1994. Its investment portfolio covers a wide range of asset classes including global stocks, bonds, forex, futures, and more. The company is renowned for its focus on global macro investment strategies, unique research methods, and in-depth market insights. Its investment decisions are typically based on a profound understanding of the global economy and financial markets, aiming to provide excellent asset management services to institutional clients.

Currently, Bracebridge Capital holds $262 million of ARK 21 Shares Bitcoin ETF and $81 million of BlackRock ETF.

5) Aristeia Capital Llc $163,400,000

Aristeia Capital LLC is a well-known hedge fund and investment management company, established in 1997 and headquartered in the United States. The company focuses on diversified investment strategies, including trading stocks, bonds, derivatives, and other financial instruments. It is renowned for its outstanding performance and strict risk management, with an investment strategy that emphasizes long-term growth and performs well in different market environments, committed to providing efficient investment management solutions for global clients.

Currently, Aristeia Capital Llc announced holding $163.4 million of IBIT investment.

6) Graham Capital Management $98.8 million

Graham Capital Management is a well-known hedge fund management company in the United States. It was established in 1994 and is headquartered in Connecticut. It was founded by the famous investment manager Kenneth Tropin.

As a leading hedge fund management company, Graham Capital Management focuses on using quantitative and systematic investment strategies to seek absolute returns in different market environments, managing a large amount of capital globally, with investment portfolios covering multiple asset classes such as stocks, bonds, commodities, forex, etc. In addition to outstanding investment performance, Graham Capital Management is also renowned for its strict risk management and a strong sense of responsibility to client interests.

Graham Capital Management holds $98.8 million in IBIT investments and $3.8 million in FBTC investments.

7. IvyRock Asset Management (Ivy Asset Management) 19 million US dollars

IvyRock Asset Management is a hedge fund management company based in Hong Kong, established in 2009, mainly focusing on the Asian markets, managing various funds through its asset management business.

IvyRock Asset Management holds nearly $19 million of spot Bitcoin ETF IBIT from BlackRock.

Investment consulting company $3.8 billion

Investment advisory firms collectively hold a total of $3.8 billion in assets under management.

1) Horizon Kinetics LLC 9.46 billion US dollars

Horizon Kinetics LLC holds the largest stake among disclosed investment advisory management companies. The company is an independent investment advisor established in 1994, headquartered in New York, USA, managing assets of various investment strategies, including mutual funds, separate accounts, and alternative investments.

One notable feature of Horizon Kinetics is its focus on non-traditional and inefficient markets. The company often seeks opportunities that are undervalued or misunderstood by the market, such as small-cap stocks, international stocks, and niche industries, aiming to profit from long-term trends and market inefficiencies.

Horizon Kinetics LLC is only the holder of Grayscale's GBTC, totaling $946 million, ranking first among investment advisory firms, and is the second largest holder of GBTC (the first will be mentioned later, Susquehanna International Group).

2) Morgan Stanley $270 million

Morgan Stanley is a globally renowned investment bank and wealth management company headquartered in New York, USA. The company was founded in 1935 and originated from the Morgan family, a financial giant in the United States. As one of the leading global financial service providers, it covers a wide range of services including corporate financing, mergers and acquisitions consulting, securities underwriting, asset management, wealth management, and investment banking. It can be said that Morgan Stanley has profound expertise and experience in investment banking, asset management, securities trading, and wealth management.

Currently, Morgan Stanley holds $269.9 million in Bitcoin ETF investments, all of which are invested in Grayscale's GBTC, making it the third-largest holder of GBTC.

3) Pine Ridge Advisers 2.1 billion US dollars

Pine Ridge Advisers was established in 2018 and is headquartered in New York. It is a well-known financial consulting company known for its expertise in wealth management, investment strategies, and financial planning. The company's mission is to provide personalized and comprehensive financial solutions to clients, covering a wide range of clients from individual investors to corporations and institutions.

Currently, Pine Ridge Advisers holds a total of 20.58 billion US dollars of Bitcoin spot ETF, with holdings of 82.3 million US dollars for IBIT of BlackRock, 93.4 million US dollars for FBTC of Fidelity, and 29.3 million US dollars for BITB of Bitwise.

4) ARK Investment Management $206 million

ARK Investment Management is an investment company founded and led by Cathy Wood, also known as "Wood Sister". It was established in New York in 2014 and focuses on theme-based investments in innovative technologies such as computer technology, energy innovation, and financial technology. The company's various funds are all focused on these themes.

ARK Investment Management holds $206 million in ARK 21 Shares Bitcoin ETF, and among the first batch of 11 spot Bitcoin ETFs launched, ARK 21 Shares Bitcoin ETF is also one of Cathie Wood's companies. Since the Bitcoin ETF was approved, ARK Investment Management has been continuously buying, which can be said to be self-produced and sold. It may be to expand the scale of the ETF through self-purchase to attract more investors.

5) Ovata Capital Management Ltd (74 million US dollars)

Ovata Capital is an investment management company based in Hong Kong, established in 2017, focusing on Asian stocks, with investments primarily concentrated in four core strategic areas: Arbitrage, relative value, event-driven, and long/shorts. Ovata's portfolio manager is Jon Lowry, who previously worked at Millennium Management and Elliott Management Corp. According to reports, Ovata's fund rose by 10% last year, outperforming its peers, with a 5.6% increase in the first four months of this year.

Currently, Ovata Capital holds Bitcoin ETFs with a total value of over $74 million, including FBTC, GBTC, BITB, and IBIT (specific share amounts undisclosed).

6) Hightower Advisors $68.34 million

Hightower is a well-known investment management company headquartered in Chicago, USA. The company offers a range of wealth management and investment solutions, aiming to provide professional services to individual investors, family offices, wealth management firms, and institutional investors. Their clients are primarily high net worth individuals, family funds, charitable organizations, and corporate clients.

Hightower holds a US Bitcoin Spot ETF worth over $68.34 million, while the company manages a total capital of $12.20 billion. It currently holds positions in 6 Bitcoin Spot ETFs, including:

• 44.84 million US dollars of grayscale GBTC;
• $12.41 million FBTC from Fidelity;
• $7.62 million Belad IBIT;
• ARKB with a value of 1.7 million US dollars;
• 99,000 USD Bitwise BITB;
• $790,000 Franklin EZBC.

7) Rubric Capital Management $60 million

Rubric Capital Management is an investment management company based in the United States, established in 2008. It focuses on long-term investments in global stock markets and is known for its in-depth research and highly specialized investment approach. Its investment strategies mainly include fundamental analysis, quantitative analysis, and market research. The company's team is dedicated to identifying companies with potential and long-term growth prospects and achieving clients' financial goals through portfolio construction and management.

Currently, Rubric Capital Management has over 60 million dollars in BlackRock Bitcoin Spot ETF.

Holding company 1.35 billion

Susquehanna International Group $1.1 billion

In the classification of holding companies, there is actually only one investor that matters, which is the parent company of Susquehanna International Group, SIG Holdings, LLC. Abbreviated as SIG, translated as Susquehanna International Group.

Susquehanna International Group (SIG) is a financial services company based in Bala Cynwyd, Pennsylvania, known for its specialization and technologization in the financial market, and is considered one of the world's largest quantitative trading companies. The company was founded in 1987 by Jeff Yass, Arthur Dantchik, and Joel Greenberg. SIG operates globally, covering areas such as securities trading, options trading, futures trading, derivatives trading, asset management, and private equity investments, with a total investment scale of approximately $575.9 billion, making Bitcoin ETF just a small part of it.

SIG holds nine BTC spot ETFs, amounting to as much as $1.31 billion, with the largest amount held by Grayscale's GBTC, buying a total of 17.27 million shares, worth as much as $10.9 billion, making it the largest holder of Grayscale GBTC.

Summary

On January 11, 2024, the Securities and Exchange Commission (SEC) approved the listing and trading of 11 Bitcoin Spot ETFs on the exchange for the first time, which is considered a milestone event in the cryptocurrency market. The approval of Bitcoin ETF and other crypto-related ETFs undoubtedly opens the door for traditional investors to enter this emerging market.

Because the ETFs listed on exchanges are regulated by the SEC, investing in Bitcoin through ETFs is relatively less risky than investing in Bitcoin directly. In addition, given the current international turmoil and the shadow of the Fed's interest rate cuts, Bitcoin spot ETFs are a better investment target for traditional financial institutions.

But if, as in the 13F filing statistics, only 20% of the disclosed holdings of large institutions amount to hundreds of billions of dollars, who is buying the remaining over 80% of the assets? Moreover, as a large amount of funds flow into these top financial products, will it lead to the absorption of funds that might originally flow into the primary and secondary markets, possibly leading to a lack of attention for new projects? Feel free to leave your comments and share your views.