When the U.S. Securities and Exchange Commission open the door In January, many traditional financial institutions on Wall Street and elsewhere finally got a chance to buy into the cryptocurrency as Bitcoin exchange-traded funds went mainstream. Since then, money has been pouring in, albeit in fits and starts.
On Wednesday, banks and hedge funds with more than $100 million in assets filed second-quarter 13F reports ahead of a deadline, revealing their investments and purchases and sales over a three-month period.
Goldman Sachs outperformed the season while rivals Morgan Stanley reduced its cryptocurrency holdings. JPMorgan Chase It hasn’t caused a big stir yet.
There is no shortage of opportunities for companies that want to enter the market slowly. Following a slew of Bitcoin-related public ETF listings in January, the U.S. Securities and Exchange Commission (SEC) went a step further last month, providing Spot Ethereum ETF, Allows investors to acquire the second largest cryptocurrency. These new holdings will start showing up in third-quarter reports.
From March to June, Goldman Sachs Entered the crypto ETF market for the first time and purchased a Bitcoin fund worth US$418 million. Its largest position is $238 million worth of BlackRock stock iShares Bitcoin Trust. The bank also holds stakes in cash funds from companies including Grayscale, Invesco and Fidelity.
Morgan Stanley is the first major Wall Street firm to offer this service Gives green light to its 15,000 financial advisors Begin marketing Bitcoin ETFs to clients with net worth over $1.5 million, specifically those with BlackRock and Fidelity. Until now, wealth managers have only facilitated trading when clients requested access to new spot cryptocurrency funds.
Morgan Stanley’s Assets under management reach US$1.5 trillionthe bank disclosed its filing The company cut its spot Bitcoin ETF holdings from about $270 million to about $189 million. Most of these cuts were due to sales almost all shares The management fees for the Grayscale Bitcoin Trust are much higher than other ETFs. The vast majority of the bank’s physical Bitcoin holdings are now held through iShares trusts.
JPMorgan Chase Report says cryptocurrency exposure is minimal Approximately $42,000 worth of Grayscale Bitcoin Fund shares and $18,000 worth of ProShares Bitcoin Strategy ETF shares. HSBC have Nearly $3.6 million Value of spot Bitcoin holdings, all from funds issued by Ark 21Shares, UBS have Approximately US$300,000 The value of spot Bitcoin ETF holdings, and Bank of America Have collective controlling interest Approximately US$5.3 millionmainly from BlackRock and Fidelity.
For most banks, the vast majority, if not all, of ETF flows can be attributed to wealth management clients requesting exposure, rather than firms’ decisions to hold assets on their balance sheets.
While Wall Street investment banks are slowly stepping in, hedge funds are taking a more aggressive approach.
Millennium Management, which manages $62 billion in assets, now holds At least five Bitcoin ETFs worth more than $1.1 billion in stocksand is the single largest shareholder of the BlackRock Bitcoin Fund, with shares worth worth more than $371 million, according to August filings.
That’s a significant drop from its $844 million worth of stock holdings Documents submitted as of Maycut its stake in BlackRock Fund by about half and its stake in Grayscale Fund by more than half.
London-based Capra Investment Management is one of Europe’s top hedge funds Assets under management reach US$30 billiondisclosed in Recent SEC Filings The firm holds more than $464 million in spot Bitcoin ETFs, including funds offered by BlackRock and Fidelity.
Point72 Asset Management and Elliott Investment Management have also entered the market, as well as firms such as Apollo Management, Citadel Advisors, Jane Street and Fortress Investment Group.
Since its launch in January, the spot Bitcoin fund has seen net flows of approximately $17.5 billion, with total fund assets reaching $53.5 billion as of mid-August. Grayscale FundPreviously in existence and converted to ETFs, $19.4 billion in gains have been realized flow out Since the change, it has seen a net inflow of $274 million, despite its new budget product.
point ether As of Tuesday, ETF holdings exceeded $7.6 billion. Barclays analysts noted that trading volumes across all spot crypto ETF products declined compared to spot trading volumes.
Still, the new ETF activity helped lift Bitcoin prices, which hit a record of more than $73,000 in March. The price has since fallen sharply, falling below $58,000 as the border market has fluctuated, but is still up more than 30% this year.
“The cryptocurrency market is strong because our sentiment has shifted,” Galaxy Digital CEO Mike Novogratz told CNBC in May. “Cryptocurrency is an asset class now. It’s going to be that way next year, it’s going to be that way forever. Both This was not the case years ago. There was risk in the asset class, but that risk has been removed.”
Bitcoin mining attracts new investors
ETFs are not the only way for investors to participate in the market.
Daniel Sundheim’s D1 Capital In the most recent quarter, Bitcoin mining positions were established to take advantage of the shift by miners to retrofit facilities to serve artificial intelligence customers. Like cryptocurrency mining, AI workloads require large amounts of electricity.
D1 managed about $19 billion at the start of the year and purchased nearly $5.4 million worth of stocks BitDeer Technology$17.3 million iris energyand nearly $17.4 million in stock Cabin 8 Company.
Cabin 8 said in a statement First quarter financial report it has been purchased NVIDIA artificial intelligence processor and has signed a customer agreement with a venture-backed artificial intelligence cloud platform as part of its expansion. Iris Energy expects to generate up to $17 million in annual revenue from its AI cloud services.
A report from JPMorgan showed that on June 15, the total market value of the 14 major listed Bitcoin miners in the United States reached $22.8 billion, setting a record high. invest Capital is invested in miners and individual company ETFs. UBS has increased its holdings in shares of Bitdeer, Bitfarms, Bit Digital, Hut 8, and more than $5 million in Iris Energy shares. Latest 13F filing.
Sondheim had previously Established reputation as a savvy investor during 15-year tenure at Viking Global Investorschanged his view on Bitcoin. In 2019, he equated Canadian cannabis companies with The closest thing to a bubble since Bitcoin.
watch: Bitcoin miners are turning to artificial intelligence
