Bitcoin Spot ETPs Gain Traction As Hedge Funds Accumulate $4.7 Billion

IconCryptoNewsTerminal Staff16 Aug, 2024

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Bitcoin Spot ETPs Gain Traction As Hedge Funds Accumulate $4.7 Billion

Hedge funds have emerged as significant players in the bitcoin spot exchange-traded product (ETP) market, accumulating a total of $4.7 billion worth of these instruments, according to data compiled from 13F filings with the U.S. Securities and Exchange Commission (SEC). Among the major hedge funds, Jane Street has made notable moves, increasing its holdings of iShares Bitcoin Trust (IBIT) by $221 million while reducing its Grayscale Bitcoin Trust (GBTC) holdings by 86%. Capula Investment Management stands out with a substantial $500 million investment in bitcoin spot ETPs. Citadel LLC has also been actively involved, tripling its holdings of ProShares Bitcoin Strategy ETF (BITO) since the first quarter of the year. The fund now holds 860,727 shares of BITO, valued at approximately $19 million. Additionally, Citadel holds $67 million worth of call options and $52 million worth of put options on BITO. Other hedge funds have established smaller positions in various bitcoin ETFs. These moves by major hedge funds indicate a growing institutional interest in bitcoin as a legitimate investment asset, providing further evidence of the mainstream adoption of cryptocurrency.

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