A representation of Bitcoin is displayed in an illustration taken at La Maison du Bitcoin in Paris. (Reuters)
Asset managers, including hedge funds, pension funds, and financial advisory firms, significantly increased their investments in U.S. bitcoin exchange-traded funds (ETFs) in the last quarter of 2024. As bitcoin’s value surged by 47%, these institutional investors saw an opportunity to capitalize on the booming cryptocurrency market, recent regulatory filings revealed.
Wisconsin’s Investment Board Doubles Bitcoin ETF Holdings
The State of Wisconsin Investment Board led the charge, more than doubling its bitcoin ETF holdings in the final quarter. By December 31, it had accumulated 6 million shares in the iShares Bitcoin Trust ETF. The board was the first institutional investor to report holdings in crypto ETFs after their U.S. debut in January 2024. However, it declined to comment on the move.
Hedge Funds and Sovereign Wealth Funds Join the Trend
Other major funds followed suit. Tudor Investment Corp, a well-known hedge fund, expanded its stake in the iShares ETF from 4.4 million shares to 8 million. As bitcoin’s price soared, the value of its holdings jumped from $159.9 million in September to $426.9 million by the end of the year. The firm did not provide a statement.
Meanwhile, Abu Dhabi’s Mubadala Investment Co made its first-ever move into bitcoin ETFs, securing 8.2 million shares of the iShares ETF, valued at $436.9 million.
Hunting Hill Capital, a hedge fund that previously had no exposure to bitcoin ETFs, also emerged as a major player. By the end of December, it had amassed positions worth approximately $131 million. According to Adam Guren, the firm's chief investment officer, the timing of the firm’s filings did not align with its active trading within the crypto ETF sector.
Financial Advisors and Investment Firms Bet on Bitcoin
Beyond hedge funds and sovereign investors, financial advisory firms also increased their exposure. Cetera Advisors and NewEdge Advisers expanded their holdings across various bitcoin ETFs, including those from Fidelity, ARK Investments, and Invesco, reflecting strong interest from their clients.
Some firms, however, took a more cautious approach. Cresset Asset Management, for instance, focused on ETFs with lower fees. Jack Ablin, its chief investment officer, highlighted that the firm was employing options strategies to hedge against potential losses while still securing significant gains.
What the Filings Reveal About Institutional Bitcoin Investment
Regulatory 13-F filings provide a rare glimpse into the investment strategies of major financial players. While these filings showcase institutional positions at the end of each quarter, they may not fully reflect their current holdings. However, the sharp increase in bitcoin ETF investments suggests that large investors are becoming more comfortable with cryptocurrency-backed assets.
As bitcoin continues to gain mainstream acceptance, institutional investors are finding new ways to participate in the market while managing risks. Whether this trend will continue depends on market conditions, regulatory developments, and bitcoin’s future performance.
