- US Spot Bitcoin ETF Inflows, Millennium Management’s Holdings Show Growing Institutional Engagement
- Galaxy Digital’s revenue surge and increased ETF investments also fueled Bitcoin’s latest surge
As Bitcoin surged past $66,000 on the price charts, the US spotted Bitcoin [BTC] ETFs recorded a notable increase. In addition, it recorded a high inflow of $303 million in two weeks.
According to data published by Farside InvestorsAll spot Bitcoin ETFs except BlackRock’s iShares Bitcoin Trust (IBIT) saw inflows on May 15.
Source: Farside Investors
Interesting datasets
Surprisingly, IBIT remained stagnant for the third day in a row, with no significant inflows or outflows. Fidelity’s FBTC was the one leading the charge with a significant inflow of $131.3 million. Additionally, Grayscale’s GBTC marked the first day of inflows in a week, attracting $27 million.
Seeing this performance, Sunny decisionone Bitcoin investor/analyst noted:
“$303,000,000 Bitcoin ETF inflow yesterday. We will be right back!”
Adding to the excitement is that another X user, ‘Bitcoin for freedom’ said,
“That’s a Bull Market Multiple of 276! No one is ready for this bull run. We haven’t seen anything yet!”
Millennium Management’s big step
Well, the story doesn’t end here! According to 13F applicationsInternational hedge fund Millennium Management has reported that it owns nearly $2 billion worth of spot Bitcoin ETF shares. As of March 31, Millennium had invested a total of $1.94 billion in five spot Bitcoin ETFs. These ETFs include ARK 21Shares, Bitwise, Grayscale, iShares and Fidelity’s offerings.
Notably, BlackRock’s Bitcoin fund represents the hedge fund’s largest allocation, with more than $844 million invested, followed closely by the Fidelity fund with just over $806 million in shares.
Bloomberg ETF analyst Eric Balchunas provided further insights on this, noting:
Source: Eric Balchunas/X
In response to this James Seyffart added,
“Only Retail Traders Buy the #bitcoin ETFs”
I join the critics of ETFs: Salim Ramjithe newly appointed CEO of Vanguard in a recent conversation with ‘Barron’s’ stood by the company’s decision not to pursue a spot launch of Bitcoin ETF.
These comments underscore the unique nature of these investments and suggest a nuanced and complex market perspective.
Increase in institutional investors
Despite the criticism, institutional investors and banking giants are flocking to Bitcoin investments. According to the latter SEC filingsBracebridge Capital announced a $363 million investment in spot Bitcoin ETFs, while JP Morgan clients contributed $731,246.
In addition, Galaxy Digital Holdings Ltd. on May 15 made waves with a notable 40% increase in net profit to $422 million, attributed to the influence of spot Bitcoin ETFs.
Therefore, these recent resurgences in spot Bitcoin ETF investments could have been the biggest factors behind Bitcoin’s rise this week.