Nearly $2 billion: This hedge fund is investing massively in Bitcoin

A New York hedge fund reveals a huge investment in Bitcoin ETFs. It is not the only financial institution with such a commitment.

Bitcoin ETF's are making an impression. The hedge fund Millennium Management has invested large sums in BTC.

The New York-based company has a total of $1.94 billion spread across five different spot ETFs. The largest positions are the iShares Bitcoin Trust ($844 million), the Fidelity Wise Origin Bitcoin Fund ($800 million) and the Grayscale Trust ($202 million).

This appears from a notification to the SEC.

The hedge fund is certainly no lightweight in the financial world. By 2023, it was one of the world's largest alternative asset managers with assets under management (AUM) of more than US$61.1 billion.

So the $1.94 billion in Bitcoin is about three percent of the fund's total assets.

Reports of such capital allocations to the Bitcoin market actually confirm the theory that the crypto market has widened with the admission of ETFs.

In addition to Millennium Management, other institutional investors are also buying Bitcoin ETFs.

For example, Bracebridge Capital, a Boston-based hedge fund that manages assets for Yale and Princeton, has $434 million in BTC ETFs.

Sequoia Financial Advisors also has $12 million in BTC ETFs.

"A total of 563 institutional investment firms reported last Thursday that they held $3.5 billion worth of ETFs," Bitwise Chief Investment Officer Matt Hougan writes in a blog post.

He continued: "This is absolutely huge. For any financial advisors, family offices or institutions wondering if they are the only ones considering Bitcoin investments, the answer is clear: You are not alone."

The BTC ETFs have a total of more than 800,000 BTC worth US$52 billion. Recently, more net money flowed into the funds again.