Hedge fund giant Millennium Management has significantly expanded its cryptocurrency holdings, according to its latest 13F filing with the SEC. The company disclosed a $2.6 billion investment in Bitcoin ETFs and $182.1 million in Ethereum ETFs.
This move reflects a growing institutional interest in digital assets, as more hedge funds and wealth management firms increase their exposure to crypto investments.
Breakdown of Millennium’s Bitcoin ETF Holdings
Millennium’s Bitcoin ETF portfolio is diversified across multiple funds, with its largest positions including:
- BlackRock’s IBIT ETF – $844 million
- Fidelity’s Bitcoin ETF – $806 million
- ARK 21Shares Bitcoin ETF
- Bitwise Bitcoin ETF
- Grayscale Bitcoin Trust (GBTC)
This diversified strategy indicates a long-term bullish stance on Bitcoin, aligning with the broader trend of institutional adoption.
Ethereum ETF Exposure Grows
In addition to Bitcoin, Millennium has allocated $182.1 million to Ethereum ETFs, reinforcing the rising demand for Ethereum-based investment products among hedge funds.
Institutional Players Enter the Crypto Market
Millennium’s move mirrors the broader trend of institutional players increasing their crypto investments:
- Abu Dhabi’s sovereign wealth fund purchased $436.9 million of BlackRock’s spot Bitcoin ETF last quarter.
- Goldman Sachs raised its Bitcoin ETF holdings to $1.5 billion.
This growing institutional involvement could drive further adoption and stabilize the crypto market amid regulatory advancements.
Millennium’s Crypto Strategy
Millennium’s crypto holdings have steadily increased, with its Bitcoin ETF investments reaching nearly $2 billion in May 2024—representing only 3% of its total assets.
This suggests that while hedge funds are cautiously exploring crypto, they see Bitcoin and Ethereum as valuable assets for portfolio diversification.
Final Thoughts
As institutional adoption of crypto accelerates, hedge funds like Millennium are taking calculated positions in Bitcoin and Ethereum ETFs. With regulatory clarity improving, institutional inflows into crypto could drive further price appreciation.
Investors will be watching closely to see if more hedge funds follow suit, potentially signaling a new phase of mainstream crypto integration.
