Bitcoin
Bracebridge bets big on Bitcoin ETFs, now biggest ARKB holder
A recent SEC filing revealed that Bracebridge Capital invested $363 million in spot Bitcoin exchange-traded funds (ETFs). This Boston-based hedge fund has large holdings in Ark 21Shares Bitcoin ETF (ARKB), Grayscale Bitcoin Trust ETF (GBTC), and BlackRock’s iShares Bitcoin Trust (IBIT).
This move highlights the growing institutional interest in cryptocurrency.
Institutional Investments in Bitcoin ETFs Rise Amid Strong Outflows
Data from Bloomberg Intelligence reveals that Bracebridge Capital holds $262 million in ARKB, $81 million in IBIT and $20 million in GBTC. The data also shows that Bracebridge Capital is the largest holder of ARKB.
This is particularly noteworthy given that Bracebridge management funds for endowments to Yale University and Princeton University. Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, commented on Bracebridge Capital’s significant investment.
“The new maximum limit (authorized participants/market maker) for Bitcoin ETF holdings has arrived. […] They went crazy. If you manage the Ivys’ money, you are as professional as possible,” Balchunas he wrote.
See more information: Crypto ETN vs. Crypto Crypto ETF: What’s the difference?
List of top 10 ARKB holders. Source: X/Eric Balchunas
Just days before this Bracebridge revelation, another SEC filing revealed that traditional banks are also jumping on the Bitcoin ETF bandwagon. Swiss-based investment bank UBS Group AG invested US$145,692 in IBIT (3,600 shares) through its subsidiaries and institutional investment managers. Edmond de Rothschild (Suisse) SA, the family-owned banking giant, also it has US$4.2 million in IBIT shares and US$82,121 in GBTC shares.
The moves by Bracebridge Capital, UBS and Rothschild align with a trend among institutional investors. BeInCrypto recently reported that the Susquehanna International Group had invested over $1.1 billion in various Bitcoin ETFs.
New York-based asset manager Hightower has also increased investments in Bitcoin ETFs. Hightower’s investments totaled US$68.35 million in spot Bitcoin ETFs.
However, James Seyffart, another ETF analyst at Bloomberg Intelligence, warned the crypto community to be careful when identifying recent Bitcoin ETF ownership trends.
“Just for your information, guys. JPM, Susquehanna (who also owns these ETFs and was on this site last week) and others are just market makers and/or [authorized participants] AP. Their ownership is not necessarily indicative of anything other than how many shares they had as of March 31, 2024,” Seyffart explained.
Despite the interest of institutional investors, the performance of US-traded spot Bitcoin ETFs could have been more impressive in May. According to data from SoSo Value, these ETFs registered only three positive flows throughout May.
On May 3, the total daily net inflow was US$378.24 million. Meanwhile, on May 6 and 8, it was $217.06 million and $11.54 million, respectively. ETFs had outflows for the rest of May, with the largest outflow of US$563.77 million on May 1st.
See more information: How to Trade a Bitcoin ETF: A Step-by-Step Approach
However, significant investments from institutions like Bracebridge Capital highlight the growing integration of cryptocurrency into mainstream financial portfolios. While the performance of spot Bitcoin ETFs fluctuatesGreater institutional support signals long-term confidence in the potential of digital assets.
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