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Among the leading 25 hedge funds in the United States, 13 have made their entry into the market by investing in ETFs during the initial quarter.
Point72, a prominent hedge fund managing $34 billion in assets, has disclosed its investment in the Fidelity Wise Origin Bitcoin Fund (FBTC).
As per a recent filing, Point72 possessed $77.5 million in FBTC at the conclusion of the first quarter.
This action aligns with a rising trend among various hedge funds that have revealed their acquisition of shares in spot Bitcoin exchange-traded funds.
Notable hedge funds, such as Elliott Capital, led by Paul Singer, and Millennium Management, owned by Izzy Englander, have publicly announced their investments in these new funds.
A majority (52%) of the nation’s largest hedge funds are betting on #Bitcoin
With the introduction of Bitcoin ETFs, institutions have run out of reasons to say no to sound money
pic.twitter.com/FI3UfBssIP
— Sam Baker (@macromule) May 17, 2024
Millennium Management is Largest Holder of Spot Bitcoin ETFs
Significantly, Millennium Management is recognized as the largest institutional holder of these funds, with around $2 billion invested as of March 31.
Other prominent investors include Fortress Investment Group and Schonfeld Strategic Advisors.
While the acquisitions of spot ETFs by these hedge funds may be interpreted as a long-term investment in the potential appreciation of Bitcoin, it is essential to recognize that these instruments can fulfill various other functions.
Hedge funds might employ them for market making, hedging strategies, yield generation, or even for short-term trading, among other purposes.
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The increasing participation of leading hedge funds in spot Bitcoin ETFs reflects the growing acceptance and interest in cryptocurrencies within traditional finance.
Bitcoin to Return to $74K Highs
Leading trading firm QCP Capital has conveyed a positive outlook regarding Bitcoin’s price trajectory, predicting a possible return to the highs of $74,000.
In a recent communication, the firm noted that it has seen significant buyers acquiring 100,000 to 120,000 BTC Calls for December 2024, suggesting confidence in the upward trend of the cryptocurrency.
“US CPI numbers triggered a breakout of the range across risk assets. BTC has since traded back above 66k,” the firm stated.
Similarly, technical analyst Rekt Capital believes that Bitcoin has moved beyond the post-halving “danger zone” and entered an accumulation phase, as evidenced by diminishing selling pressure.
“The Post-Halving Bitcoin “Danger Zone” (purple) is officially over,” the well-known crypto trader remarked in a recent post on X.
Despite the optimistic perspective from some analysts, Michael Novogratz, the founder of Galaxy Digital Holdings, a notable digital-asset financial services firm, anticipates that Bitcoin will remain within a relatively narrow trading range in the current quarter.
As reported, he expects Bitcoin to stay within the range of approximately $55,000 to $75,000 until specific market events or conditions drive the prices higher.
Novogratz referred to the favorable conditions experienced in the fourth quarter of the previous year and the first quarter of this year.
“I think that is probably where we are certainly for this quarter, maybe next quarter until either A, the Fed starts cutting rates because the economy finally slows or B, we get through the election and I think the election will bring clarity one way or the other to the crypto regulatory landscape.”
The post Top U.S. Hedge Funds Embrace Spot Bitcoin ETFs, 13 of 25 Invested: River Report appeared first on Cryptonews.
