Susquehanna International Group, an asset management behemoth with a trading volume that handles numerous financial products worldwide, has made a substantial investment in Bitcoin through several exchange-traded funds (ETFs). A disclosure to the Securities and Exchange Commission (SEC) on May 7 revealed that Susquehanna held approximately $1.2 billion in spot ETFs in the first quarter of 2024.
The Bitcoin ‘Monster Whales’ are here
The details of the investment are particularly striking for their size and diversity. Susquehanna now owns 17,271,326 shares of the Grayscale Bitcoin Trust (GBTC), which is worth approximately $1.09 billion as of March 31, 2024 alone. This single investment represents a significant portion of the entire BTC investment, indicating Susquehanna’s preference for Grayscale due to its high liquidity.
Further diversification in Susquehanna’s holdings includes 1,349,414 shares of Fidelity’s spot Bitcoin ETF (FBTC), valued at approximately $83.74 million. Additionally, the company has significantly increased its stake in the ProShares Bitcoin Strategy ETF (BITO), which provides exposure to BTC futures contracts. Susquehanna, as of the same date, owned 7,907,827 shares of BITO, valued at approximately $255.42 million – this represents a 57.59% increase from a February filing that listed 5,021,149 shares.
Additionally, Susquehanna’s Bitcoin ETF portfolio includes holdings in other high-profile funds such as the BlackRock ETF, ARK21 ETF, Bitwise ETF, Valkyrie ETF, Invesco Galaxy ETF, VanEck ETF Trust, and WisdomTree ETF. The company’s strategic selection of funds illustrates its comprehensive approach to taking advantage of various aspects of Bitcoin’s investment potential.
Susquehanna International Group, LLP owns over $1 billion in Bitcoin ETFs, according to recent portfolio update pic.twitter.com/0UPzLUVRsK
— Phoenix »PhoenixNews.io (@PhoenixTrades_) May 7, 2024
Julian Fahrer, CEO and co-founder of Apollo, commented on the magnitude of this development, saying: “HUGE: Susquehanna International Group is the largest Bitcoin ETF whale to date! $1.2 billion held across 10 ETFs! The monsters are here.” This enthusiastic support reflects the growing optimism and institutional interest in cryptocurrency investing.
Despite these significant holdings, Susquehanna’s allocation to BTC remains a relatively small portion of her overall portfolio. With a total investment of over $575.8 billion, the $1.2 billion in Bitcoin ETFs make up approximately 0.22% of the company’s assets, marking a cautious yet significant entry into the digital asset space.
This step by Susquehanna has far-reaching consequences for the market. Bitcoin ETFs got off to a flying start in trading and have seen interest wane in recent weeks. The increase in institutional investment, as evidenced by Susquehanna’s activities, is expected to increase Bitcoin’s credibility and stability as a financial asset.
Furthermore, Susquehanna’s various investments are not just limited to direct exposure to Bitcoin. The company also reported indirect exposure through its positions in MicroStrategy stock, which has a significant Bitcoin reserve on its balance sheet. However, in a recent rebalance, Susquehanna reduced its holding in MicroStrategy by almost 15%, with exposure adjusted in line with strategic portfolio adjustments.
At the time of writing, BTC was trading at $62,352.
Featured image by Rémi Boudousquié / Unsplash, chart from TradingView.com
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