We finally know who are early investors in Bitcoin ETFs. There are beautiful people there.
Bitcoin ETF
Bitcoin ETFs are wildly successful. They attracted almost 12 billion dollars following their launch on January 11.
They collectively represent nothing more and nothing less than the most successful ETF launch in ETF history. Bitcoin has since appreciated by 43%. But who buys?
Are these mainly institutional and professional investors, or rather individuals? This is an important question. Indeed, the strike force of institutional investors is beyond measure.
It was not possible to answer this question during the first months since investors buy ETF shares via financial intermediaries. The companies that manage ETFs (Bitwise, Fidelity, BlackRock, etc.) therefore do not automatically know who their clients really are.
However, once a quarter, the SEC requires investors managing more than $100 million to report their holdings through a filing called “13F Filling.”
The deadline for this declaration was May 15. It appears that the total value of all declared positions amounts to $5.2 billion, distributed among 929 institutions. It’s huge…
These include iconic asset managers such as:
- Millennium : $1.9 billion
- Susquehanna International Group : 1 billion dollars
- Boothbay Fund Management : $377 million
- Morgan Stanley : $270 million
- Pine Ridge Advisers : $205 million
- Bracebridge Capital : $434 million
- State Wisconsin Investment Board : $99 million
- Brown Advisory : 96 million
- Crcm Lp : 96 million
- Hightower Advisors : $68 million ($122 billion under management)
- Cambridge Investment Research : 40 million dollars
- Yong Rong Asset Management : $38 million
- Legacy Wealth Management : $28 million
- Quattro Advisors : $19 million
- Sequoia Financial Advisors : $12 million
The Millennium fund, king of ETFs
Millennium is the largest Bitcoin ETF holder with nearly $2 billion across four ETFs.
This involves more than 900 holders, more than 360 times the average for a new ETF. Also note that more than 60% of investments come from investment funds. Furthermore, all categories of investors are represented.
Thus, even the banks have succumbed to the sirens of bitcoin. Morgan Stanley joins the list of globally systemically important banks investing in Bitcoin ETFs. These include Royal Bank of Canada, JP Morgan Chase, Wells Fargo, BNP Paribas and UBS.
Another institutional choice, the state retirement fund of the Wisconsin Investment Board. This is all the more remarkable since pension funds generally never invest in ETFs so soon after their launch.
Matt Houganchief information officer at ETF issuer Bitwise, said the bitcoin allocations revealed in the first quarter's 13F filings were just a ” deposit “.
Most professional investors will take six to 12 months to make a decision, he said.
“Many funds begin allocating funds from all of their clients only six months after the initial allocation. Allocations range from 1 to 5% of the portfolio »writes Mr. Hougan in a note sent this Tuesday to his clients.
It is difficult not to remain optimistic in the face of this deluge of institutions. Bitcoin is regaining altitude following this excellent news.
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