Boston Hedge Fund Expands Portfolio with Acquisition of $363 Million in Bitcoin ETF Shares

A Boston-based hedge fund known for managing the financial resources of prestigious educational institutions has revealed a massive accumulation in Bitcoin exchange-traded fund (ETF) shares. Bracebridge Capital, which reports managing around $12 billion in net assets under management, recently diversified its investment allocations by acquiring a vast $363 million worth of Bitcoin ETFs.

Detailing this acquisition, the ARK 21Shares Bitcoin ETF (ARKB) represents the largest portion, with Bracebridge owning investments valued at US$262 million. This is followed by $81 million invested in BlackRock’s iShares Bitcoin Trust (IBIT) and $20 million in the Grayscale Bitcoin Trust ETF (GBTC). This information was confirmed by Eric Balchunas, senior ETF analyst at Bloomberg, highlighting the growing institutional interest in crypto assets.

In addition to investments in cryptocurrencies, Bracebridge also has significant stakes in other sectors, including biotechnology with the company Alvotech, the financial holding company Ambac Financial, and the security company ADT. This diversification reflects a robust investment strategy that seeks to balance risk and return on several market fronts.

The new high water mark (ex APs/market makers) for bitcoin ETF holdings has arrived. Boston-based Bracebridge Capital has reported owning $262m of $ARKB. It’s also the biggest owner of $ GOES too with $81m in that ETF. They also own $20m of $GBTC. They went wild basically. pic.twitter.com/RzdpwE2D0k

— Eric Balchunas (@EricBalchunas) May 13, 2024

The scenario of investments in Bitcoin ETFs by large financial institutions is equally dynamic. As revealed in a recent F13 form, which requires disclosure of holdings by institutional managers, JPMorgan manages approximately $760,000 worth of Bitcoin ETF shares, spread across various offerings such as BlackRock’s iShares Bitcoin Trust, ProShares Bitcoin Strategy ETF (BITO ), Fidelity’s Wise Origin Bitcoin Fund (FBTC), Grayscale Bitcoin Trust and Bitwise Bitcoin ETF, on behalf of their clients.

Wells Fargo is also involved, owning 2,245 shares of the Grayscale Bitcoin Trust, which, at the time of writing, is valued at nearly $123,000. This involvement of established names in the financial sector underlines the growing integration of cryptocurrencies as a legitimate and attractive asset class for institutional investors.

Disclaimer:

The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading cryptocurrencies carries a risk of financial loss.