During the first quarter, a significant number of top hedge funds in the United States entered the market by investing in ETFs, with 13 out of the top 25 hedge funds participating. Notably, Point72, a renowned hedge fund with $34 billion in assets under management, disclosed its investment in the Fidelity Wise Origin Bitcoin Fund (FBTC). At the end of the first quarter, Point72 held $77.5 million worth of FBTC. There has been a growing trend among various hedge funds, including Elliott Capital and Millennium Management, who have publicly shared their investments in spot Bitcoin exchange-traded funds. These investments show a shift towards cryptocurrencies within traditional finance.
Millennium Management is the largest institutional holder of spot Bitcoin ETFs, with approximately $2 billion invested as of March 31. Other prominent names among the investors include Fortress Investment Group and Schonfeld Strategic Advisors. Hedge funds may use these investments for various purposes beyond long-term bets on potential price appreciation, such as market making, hedging strategies, generating yield, or short-term flipping. The increasing involvement of top hedge funds in spot Bitcoin ETFs reflects the growing acceptance and interest in cryptocurrencies within the traditional finance sector.
QCP Capital, a leading trading firm, has expressed optimism about Bitcoin’s price momentum, predicting a potential return to highs of $74,000. The firm noted substantial buyers acquiring BTC Calls for December 2024, indicating confidence in the cryptocurrency’s upward movement. Additionally, technical analyst Rekt Capital believes that Bitcoin has entered an accumulation phase after emerging from the post-halving “danger zone,” as indicated by weakening selling pressure. Despite these positive views, Michael Novogratz, founder of Galaxy Digital Holdings, expects Bitcoin to remain within a relatively narrow trading range in the current quarter, between approximately $55,000 and $75,000, until specific market events or circumstances push prices higher.
The involvement of top hedge funds in spot Bitcoin ETFs showcases their increasing interest and acceptance of cryptocurrencies within traditional finance. Hedge funds are using these investments for various purposes, beyond just betting on potential price appreciation, such as market making, hedging strategies, generating yield, or short-term flipping. QCP Capital and technical analyst Rekt Capital have expressed optimism about Bitcoin’s price momentum, with predictions of a potential return to highs of $74,000 and indications of an accumulation phase after emerging from a post-halving “danger zone.” Despite these positive views, Michael Novogratz expects Bitcoin to remain within a relatively narrow trading range until specific market events or circumstances push prices higher.
The involvement of top hedge funds in spot Bitcoin ETFs demonstrates the growing acceptance and interest in cryptocurrencies within traditional finance. These investments serve various purposes beyond just betting on potential price appreciation, including market making, hedging strategies, generating yield, and short-term flipping. QCP Capital and technical analyst Rekt Capital are optimistic about Bitcoin’s price momentum, with predictions of a return to highs of $74,000 and indications of an accumulation phase. However, Michael Novogratz expects Bitcoin to remain within a relatively narrow trading range until specific market events or circumstances push prices higher. The increasing acceptance of cryptocurrencies among hedge funds reflects a broader trend towards cryptocurrency adoption within the financial industry.
