Source: Bloomberg Original title: Capula, Schonfeld, Point72 Among Hedge Funds Riding Bitcoin ETFs Author: Isabelle Lee Compiler: BitpushNews Scott Liu In the second quarter of 2024, traditional investors such as hedge funds, pensions and banks continued to inject capital into Bitcoin exchange-traded funds (ETFs). U.S. regulators have gradually brought Bitcoin as an asset into the mainstream market, with several well-known hedge funds becoming major holders of Bitcoin ETFs. According to Bloomberg's analysis of second-quarter filings from the U.S. Securities and Exchange Commission (SEC), Millennium Management is one of the most well-known buyers. The hedge fund, which manages $68 billion in assets, holds shares in at least five Bitcoin ETFs. Although it has significantly reduced its holdings compared to the previous quarter, it is still the largest holder of most funds, including BlackRock's iShares Bitcoin Trust (IBIT). In addition, Capula Investment Management, Schonfeld Strategic Advisors and Steven Cohen's Point72 Asset Management also disclosed their Bitcoin ETF holdings in the report. In addition, from the State of Wisconsin Investment Board to market makers spanning Hong Kong, the Cayman Islands, Canada and Switzerland, all participated in the purchase of Bitcoin ETFs. According to Bloomberg data, as of the second quarter, 701 funds had newly held Bitcoin spot ETFs, with a total of nearly 1,950 holders. Although Millennium, Capula, Schonfeld, SWIB and Point72 declined to comment on the matter, their participation clearly reflects the strong interest of traditional financial institutions in Bitcoin ETFs. The Bitcoin spot ETF launched in January this year has exceeded expectations in terms of capital inflows and asset size. Including new entrants, the entire Bitcoin ETF market has attracted $17 billion in net inflows this year, of which BlackRock's IBIT fund has swelled to $20 billion. The existence of such ETFs provides ordinary investors with an easy way to trade Bitcoin. Although Bitcoin's price performance was poor in the second quarter, with a drop of nearly 13%, the increase in the number of holders is still encouraging. According to Noelle Acheson, author of the “Crypto Is Macro Now” newsletter, although not many financial advisors are currently allowed to recommend these ETFs to clients, there are still institutions such as Morgan Stanley that have begun to allow financial advisors to recommend Bitcoin ETFs to clients."This reflects investors' conviction and their willingness to spend time researching these products," Acheson said. So far, Morgan Stanley is the only large institution that allows financial advisors to recommend a Bitcoin spot ETF, but others are likely to follow, bringing not only more demand but also a longer-term investment perspective." In addition, the spot Ethereum ETF launched in July has also attracted $1.9 billion in inflows, although this does not include the $2.3 billion outflow from Grayscale Ethereum Trust (ETHE) after it switched to an ETF. It is worth noting that 13F documents are filed quarterly by qualified institutional investment companies, and these documents only represent the holdings at a certain point in time, so it is impossible to confirm the specific reasons why these fund managers hold ETFs. It is not ruled out that some of them are not firm supporters of Bitcoin, and may be trying to profit from the volatility of cryptocurrencies or hedge short positions through derivatives. In addition, some funds may purchase ETFs through basis trades, taking advantage of the price difference between the spot and futures markets without directly handling Bitcoin. Among the buyers in the second quarter was also the hedge fund Hunting Hill Global Capital, which reported holding shares in the IBIT fund. The fund has been involved in the cryptocurrency field since 2016. Its founder and chief investment officer Adam Guren said: "One of our trading strategies is to provide liquidity for the ETF ecosystem. Given the current political factors, we expect more products to be launched in the United States, including options on Bitcoin ETFs, Solana ETFs, etc. These products will create more opportunities for our trading strategies." Twitter: https://twitter.com/BitpushNewsCN Bitpush TG Exchange Group: https://t.me/BitPushCommunity Bitpush TG Subscription: https://t.me/bitpush Bitpush Btok Subscription: https://btok360.com/bitpush Original link: https://www.bloomberg.com/news/articles/2024-08-15/more-hedge-funds-buy-bitcoi... Note: All articles on Bitpush only represent the author's views and do not constitute investment advice Bitcoin ETFBlackrockCapula Investment ManagementMillenniumPoint72 Related News What happens after the Ethereum spot ETF is approved? 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