Point72, the $34 billion hedge fund owned by billionaire Steven Cohen, who also owns the New York Mets, held $77.5 million in the Fidelity Wise Origin Bitcoin Fund (FBTC) at the end of the first quarter, according to a recent filing.
Growing Hedge Fund Interest in Bitcoin ETFs
Point72 is not alone in investing in bitcoin exchange-traded funds (ETFs). Other prominent hedge funds, including Paul Singer’s Elliott Capital and Izzy Englander’s Millennium Management, have also disclosed significant investments in these funds. As of March 31, Millennium Management was the largest institutional holder, with approximately $2 billion invested in bitcoin ETFs.
Widespread Adoption Among Top Hedge Funds
Data from bitcoin brokerage firm River indicates that 13 of the top 25 hedge funds in the U.S. purchased shares of bitcoin ETFs in the first quarter. Besides the names mentioned, Fortress Investment Group and Schonfeld Strategic Advisors are also among the investors in these spot bitcoin ETFs.
Also Read: Bitwise CIO Matt Hougan Celebrates Success of Bitcoin ETFs
Motivations Behind Hedge Fund Investments
While hedge funds might be betting on the long-term appreciation of bitcoin, there are various other strategic reasons for investing in these ETFs. These include market making, hedging, yield generation, and short-term trading opportunities.
