Englander's Millennium, Singer’s Elliott Bet Big on Bitcoin ETFs

State of Wisconsin invests $161 million in Bitcoin ETFs, signaling institutional embrace alongside Millennium and Elliott's billions in allocations.

By Alex P. Chase

5/15, 17:40 EDT
Bitcoin / U.S. dollar

Key Takeaway

  • Millennium Management and Elliott Capital among top hedge funds investing in Bitcoin ETFs, with Millennium holding $2 billion across several funds.
  • Largest allocations include $844 million in BlackRock's iShares Bitcoin Trust and $800 million in Fidelity's Wise Origin Bitcoin Fund by Millennium.
  • Apollo Management Holdings disclosed a significant $53.2 million stake in ARK/21's ARKB, highlighting institutional interest in cryptocurrency ETFs.

Institutional Embrace of Bitcoin ETFs

The latest filings with the U.S. Securities and Exchange Commission (SEC) have unveiled a significant shift in the investment landscape, with major institutional players revealing substantial allocations into spot bitcoin exchange-traded funds (ETFs). Notably, the State of Wisconsin led this trend with a groundbreaking $161 million investment, marking a pivotal moment in the acceptance of digital assets by traditional financial entities. Following this, hedge fund giants like Millennium Management and Elliott Capital, alongside Apollo Management Holdings, disclosed their stakes, collectively amounting to billions of dollars, across various bitcoin ETFs including BlackRock’s iShares Bitcoin Trust (IBIT), Fidelity Wise Origin Bitcoin Fund (FBTC), and Grayscale’s Bitcoin Trust (GBTC).

Bitcoin Stability Amid Market Volatility

Despite the frenetic surge in meme stocks such as GameStop and AMC, which saw over 160% increases, Bitcoin has demonstrated remarkable stability, with only a minor 0.1% decrease. This stability is particularly noteworthy against the backdrop of 2021’s parallel rallies of meme stocks and Bitcoin. The current economic environment, characterized by stronger U.S. producer price data, suggests a rangebound trajectory for Bitcoin, contrasting sharply with the speculative fervor surrounding meme stocks. Antoni Trenchev, cofounder of crypto exchange Nexo, and economist Noelle Acheson have both highlighted the macroeconomic challenges and the evolving perception of Bitcoin as factors influencing its current market behavior.

The Evolution of Bitcoin's Market Perception

The introduction of Bitcoin ETFs in the U.S. has marked a significant evolution in the market's perception of Bitcoin, transitioning from its association with speculative meme stocks to a credible investment asset. This shift has attracted a broader base of investors, encompassing both retail and institutional participants. Sylvia Jablonski, CEO of Defiance ETFs, emphasized the growing credibility among investors, noting an increased inclination to hold Bitcoin and Ether for extended periods. Despite a recent pullback from its first-quarter rally, the market views this as a healthy correction, with expectations of a consolidation phase ahead.