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Top Hedge Funds Investing in Bitcoin ETFs
Several top hedge funds in the United States have recently entered the market by investing in Bitcoin exchange-traded funds (ETFs). This trend highlights a growing acceptance and interest in cryptocurrencies within traditional finance.
Point72’s Investment in Fidelity Wise Origin Bitcoin Fund
Point72, a renowned hedge fund managing $34 billion in assets, has disclosed its investment in the Fidelity Wise Origin Bitcoin Fund (FBTC). As per a recent filing, Point72 held $77.5 million worth of FBTC by the end of the first quarter.
Millennium Management Leads in Spot Bitcoin ETF Holdings
Millennium Management emerges as the largest institutional holder of spot Bitcoin ETFs, with around $2 billion invested as of March 31. Other notable investors in these funds include Fortress Investment Group and Schonfeld Strategic Advisors.
Purposes of Hedge Funds’ Bitcoin ETF Purchases
While hedge funds’ purchases of spot ETFs are often viewed as a long-term bet on Bitcoin’s price appreciation, these vehicles can serve various purposes. Hedge funds may utilize them for market making, hedging strategies, generating yield, or short-term flipping, among other reasons.
Bitcoin Price Forecast and Analysis
Leading trading firm QCP Capital is optimistic about Bitcoin’s price momentum, predicting a potential return to highs of $74,000. The firm notes substantial buyers acquiring BTC Calls for December 2024, indicating confidence in the cryptocurrency’s upward movement.
Technical analyst Rekt Capital suggests that Bitcoin has transitioned from the post-halving “danger zone” into an accumulation phase, with weakening selling pressure indicating a positive outlook for the cryptocurrency.
Despite bullish views from some analysts, Michael Novogratz of Galaxy Digital Holdings expects Bitcoin to trade within a relatively narrow range of $55,000 to $75,000 in the current quarter. He anticipates clarity in the crypto regulatory landscape post-election or potential market events impacting prices.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
