701 funds enter! In the second quarter, hedge funds continue to bet on Bitcoin ETF, with Millennium, Capula, and Point72 all holding positions

Documents submitted to regulators show that as more traditional investors begin to accept Bitcoin as an asset class, in the second quarter of this year, hedge funds, pension funds, and banks continued to pour a significant amount of money into direct investment Bitcoin exchange-traded funds (ETFs) that only started trading in January this year.

Media analysis of the 13F filings submitted to the U.S. Securities and Exchange Commission (SEC) recently revealed second-quarter holdings, with some prominent hedge funds investing in Bitcoin spot ETFs including Millennium Management, Capula Investment Management, Schonfeld Strategic Advisors, and Point72 Asset Management under the leadership of hedge fund giant Steven Cohen. In addition to hedge funds, buyers of such ETFs also include the Wisconsin Retirement System and the Wisconsin Investment Board, as well as market makers in locations such as Hong Kong, the Cayman Islands, Canada, and Switzerland.

Among them, Millennium Management, which manages $68 billion in assets, holds at least five Bitcoin spot ETFs, including the iShares Bitcoin Trust (IBIT) issued by BlackRock. Millennium's holdings of IBIT in the second quarter decreased by 48% compared to the first quarter, with an end-of-quarter market value of approximately $371 million. Holdings in the other two ETFs - the Grayscale Bitcoin Trust (GBTC) which transitioned to an ETF and the Fidelity Wise Origin Bitcoin ETF (FBTC) co-issued by Fidelity - were reduced by 52% and 14% respectively. The media pointed out that Millennium significantly reduced its holdings of Bitcoin ETFs in the second quarter, but remains the largest holder of most Bitcoin ETFs.

According to the 13F filings, Capula Investment Management held a total market value of approximately $464 million in Bitcoin spot ETFs in the second quarter, including around $253 million worth of IBIT and $211 million worth of FBTC.

Media statistics show that after the deadline for submitting 13F filings to the SEC on Wednesday, August 14th, a total of 701 funds reported holding Bitcoin spot ETFs, bringing the total number of funds holding such ETFs to nearly 1950.

It is worth mentioning that the above-mentioned funds built positions in Bitcoin ETFs in the second quarter of this year, when the price of Bitcoin fell by nearly 13%. Noelle Acheson, author of Crypto Is Macro Now, commented that considering Bitcoin's poor performance in the second quarter and the lack of financial advisors allowed to recommend Bitcoin ETFs to clients, the increase in holders of such ETFs is particularly encouraging

Wall Street News once mentioned that the approval of 11 Bitcoin spot ETFs listed in the United States on January 11 this year marked a further reduction in the threshold for Bitcoin investment tools, providing investors with a more convenient and cost-effective investment channel. Despite facing market fluctuations, exchange collapses, and criticism from heavyweight figures in the financial industry, Bitcoin's resilience has been validated by the market. In response to customer demand, this month Morgan Stanley set a Wall Street precedent by allowing its financial advisors to promote Bitcoin ETFs for the first time among major banks. Starting from the 7th of this month, approximately 15,000 financial advisors at Morgan Stanley can recommend IBIT and FBTC to clients.

Media estimates suggest that since the listing of Bitcoin spot ETFs in January, they have attracted a cumulative net inflow of $17 billion, with IBIT's assets under management expanding to $20 billion. Both in terms of fund flows and asset management, the performance of such Bitcoin ETFs has exceeded expectations