Investing in Bitcoin ETFs

Goldman Sachs and Morgan Stanley invested over $600 million in spot Bitcoin ETFs in Q2 2024, revealed by recent regulatory filings.

Key Details

• Goldman Sachs:

  • Invested ~$418 million in bitcoin ETFs.
  • Major holdings include:
  • BlackRock iShares Bitcoin Trust: ~7 million shares worth ~$238 million.
  • Other ETFs: Fidelity Wise Origin, Invesco Galaxy, and smaller ETFs launched earlier this year.

• Morgan Stanley:

  • Held over 5.5 million shares of iShares Bitcoin Trust, valued at ~$188 million.
  • Reduced GBTC holdings significantly, from $269.9 million to ~$148,000.
  • Also held smaller positions in ARK 21Shares ETF and Grayscale Bitcoin Trust.

Market Context

These filings highlight increasing institutional interest in Bitcoin ETFs, though retail investors still dominate the market, per ETF issuers.

Hedge Fund Activities

• Hunting Hill Global Capital:

  • Squandered some Grayscale and Fidelity ETF exposure but took on a new $25.6 million position in BlackRock’s ETF and maintained an $18.32 million stake in Bitwise Bitcoin ETF.

• Millennium Management LLC:

  • Reduced overall Bitcoin ETF investments from $2 billion to $1.15 billion, increasing stake in Bitwise ETF instead.

Overall, these movements reflect evolving dynamics in institutional interest in Bitcoin, especially in the ETF market.