Best 5 BTC ETF holders: A guide for 2024

The approval of spot Bitcoin (BTC) exchange-traded funds (ETFs) in the U.S. in January 2024 marked a significant moment for the cryptocurrency industry.

This decision officially recognized Bitcoin as a financial asset, opening the doors for professional investors, hedge funds, family offices, and institutions to invest in Bitcoin.

In May 2024, the U.S. state of Wisconsin announced that it had purchased spot BTC ETFs worth $163 million in the first quarter of 2024, becoming one of the first state pension funds to invest in cryptocurrencies.

The influx of institutional capital is expected to bolster Bitcoin prices while also making it more responsive than ever to macroeconomic factors. So, who are the largest BTC ETF holders among institutions? Let's explore.

How can we determine which institutions have invested in spot BTC ETFs?

The U.S. Securities and Exchange Commission (SEC) mandates that investors with assets exceeding $100 million must submit a quarterly report, known as Form 13F. This report requires investors to disclose their holdings of publicly traded securities.

The filing deadline for Form 13F is 45 days after the quarter's end.

Market participants analyze Form 13F filings to determine where institutions and professional investors are allocating their capital.

Best 5 institutional investors in spot BTC ETFs

As per Matt Hougan, the chief investment officer at Bitwise, spot BTC ETFs amassed more than $11 billion in assets by mid-May 2024, making it the most popular ETF launch ever.

Here are the leading institutional investors in spot Bitcoin ETFs based on 13F filings for Q1 2024.

1. Millennium Management – $1.95 billion

Millennium Management is an investment management firm based in New York, managing over $64 billion in assets. The firm pursues diverse investment strategies across various asset classes, geographies, and industries.

As of the end of Q1 2024, Millennium's total exposure amounted to approximately $1.95 billion, making it the largest known holder of spot Bitcoin ETFs.

According to the firm's 13F filing, Millennium's spot BTC holdings were distributed across Blackrock's IBIT ($844.1 million), Fidelity's FBTC ($806.6 million), Grayscale's GBTC ($202 million), Ark Invest's ARKB ($45 million), and Bitwise's BITB ($44.7 million).

When asked about the rationale behind fund managers spreading their investments across multiple ETFs that track the same underlying asset, Eric Balchunas, Senior ETF Analyst at Bloomberg, explained:

"Case by case, but spreading out the trading helps reduce impact, avoids drawing attention, or might be due to imposed limits."

2. Susquehanna International Group – $1.24 billion

Susquehanna International Group (SIG) is a Philadelphia-based quantitative trading firm with various business units, including institutional brokerage, venture capital and private equity funds, sports analytics, and structured equity investments.

As of the end of the first quarter of 2024, SIG held approximately $1.24 billion in spot Bitcoin ETFs.

According to SIG's 13F filing, the firm had positions in all available spot Bitcoin ETFs except Hashdex's DEFI. Its largest position was in Grayscale's GBTC, valued at $1.09 billion.

SIG also held Fidelity's FBTC ($83.7 million), Ark Invest's ARKB ($36.1 million), BlackRock's IBIT ($23.6 million), Bitwise's BITW ($21.7 million), VanEck's HODL ($20.6 million), WisdomTree's BTCW ($19.3 million), Franklin Templeton's EZBC ($14.3 million), Invesco's BTCO ($11.8 million), and Valkyrie's BRRR ($3.9 million).

Additionally, SIG had indirect exposure to Bitcoin through its shareholding in Nasdaq-listed tech firm MicroStrategy.

3. Bracebridge Capital – $434 million

Bracebridge Capital is an investment management firm based in Boston that follows an absolute return strategy, aiming for returns uncorrelated with benchmark indices.

The firm manages private investment funds catering to endowments, foundations, pension funds, and high-net-worth investors. Bracebridge Capital reportedly manages endowment funds for Yale University and Princeton University.

According to its 13F filing, Bracebridge Capital held $307.2 million in ARKB, $26.5 million in GBTC, and $100.6 million in IBIT, allocating a total of $434.3 million to spot Bitcoin ETFs in Q1 2024.

4. Boothbay Fund Management – $376 million

Boothbay Fund Management is a New York-based multi-strategy investment manager that aims for low correlation with traditional asset classes.

According to its 13F filing, Boothbay held approximately $376.6 million in spot Bitcoin ETFs, including holdings in BlackRock's IBIT ($149.8 million), Fidelity's FBTC ($105.5 million), Grayscale's GBTC ($69.5 million), and Bitwise's BITB ($52.3 million).

5. Morgan Stanley – $271 million

Morgan Stanley is a multinational investment bank listed on the New York Stock Exchange, founded in 1935. Fortune ranked Morgan Stanley 61st in the list of the largest US corporations by total revenue in 2023.

The bank offers investment management and wealth management services, with client assets under management totaling $7 trillion as of March 31, 2024.

According to its 13F filing, Morgan Stanley held over $271 million in spot Bitcoin ETFs at the end of Q1 2024. The bank's holdings included $2.25 million in Ark Invest's ARKB and $269.7 million in Grayscale's GBTC.

In conclusion, institutional investors in the U.S. have shown remarkably favorable interest in spot crypto ETFs. According to Bitwise CIO Matt Hougan, there's a promising outlook ahead, considering that most investment firms have allocated less than 1% of their portfolio to Bitcoin in Q1 2024.

Hougan predicts that six months after the initial allocation, firms will expand their investments across their entire client base.

Overall, the introduction of spot crypto ETFs has opened up additional markets for Bitcoin, reflecting a growing demand for the cryptocurrency.