Written by Suzanne McGee
(Reuters) – Investment managers, from wealth management firms to hedge funds and pension funds, increased their investments in U.S. exchange-traded funds linked to bitcoin prices during the fourth quarter of 2024, as the value of the leading cryptocurrency surged by 47%, according to recent regulatory disclosures.
The State of Wisconsin Investment Board revealed in its quarterly 13-F filings to the Securities and Exchange Commission that its bitcoin ETF shares more than doubled to 6 million shares of the iShares Bitcoin Trust ETF by December 31. This fund was the first of its kind to report an investment in crypto following the launch of bitcoin ETFs, but they could not be reached for immediate comment.
Other major funds also increased their stakes in the ETFs that were introduced in January 2024.
Tudor Investment Corp, a systematic hedge fund manager, indicated its holdings of the iShares ETF—now the largest in the group with over $55 billion in assets—grew from 4.4 million to 8 million shares. The value of these assets also rose significantly, in line with bitcoin’s ascent, reaching $426.9 million, up from $159.9 million at the end of September. Tudor did not respond immediately to requests for comments.
The Mubadala Investment Co, a sovereign wealth fund from Abu Dhabi, reported its initial investment in bitcoin ETFs during the fourth quarter, acquiring an 8.2 million share stake in the iShares ETF valued at $436.9 million.
Hedge fund Hunting Hill Capital had no exposure to these ETFs at the end of the third quarter, but by December 31, it was a notable investor, with its positions valued at approximately $131 million at year-end.
“We’ve been actively trading within the broader crypto ETF space, and the timing for our third-quarter filing may not have synced with our ETF trading activities,” stated Adam Guren, founder and chief investment officer of the firm.
Among those expanding their holdings were financial advisory firms, as their clients showed a strong interest in bitcoin ETFs. Firms like Cetera Advisors and NewEdge Advisers increased investments in several ETFs, including those from Fidelity, ARK Investments, and Invesco.
Other investors opted for a more selective approach, according to the filings. Jack Ablin, chief investment officer at Cresset Asset Management, noted that the firm increased its exposure to ETFs with lower fees.
“Currently, it is also feasible to obtain attractive options pricing for collar strategies, which enable downside protection while conceding less of the upside on these bitcoin funds,” Ablin explained.
