Bracebridge Capital, a prominent hedge fund based in Boston that specializes in managing the financial resources of esteemed educational institutions, has made a significant move in the cryptocurrency market. The firm, which oversees approximately $12 billion in net assets under management, has recently diversified its investment portfolio by acquiring a staggering $363 million worth of Bitcoin exchange-traded fund (ETF) shares.
Among the various Bitcoin ETFs that Bracebridge has invested in, the ARK 21Shares Bitcoin ETF (ARKB) holds the largest portion, with the fund owning investments valued at $262 million. Additionally, Bracebridge has allocated $81 million to BlackRock’s iShares Bitcoin Trust (IBIT) and $20 million to the Grayscale Bitcoin Trust ETF (GBTC). Eric Balchunas, a senior ETF analyst at Bloomberg, has confirmed this information, emphasizing the growing interest of institutional investors in crypto assets.
Alongside its investments in cryptocurrencies, Bracebridge also holds significant stakes in other sectors, such as biotechnology with Alvotech, a leading company in the field, as well as Ambac Financial, a financial holding company, and ADT, a renowned security company. This diversified approach to investments reflects Bracebridge’s robust strategy, aiming to balance risk and maximize returns across multiple markets.
The news of Bracebridge’s substantial investment in Bitcoin ETFs has garnered attention within the industry. Eric Balchunas, in a tweet, revealed that Bracebridge is now the largest owner of both ARKB and IBIT, with holdings worth $262 million and $81 million, respectively. The fund’s acquisition of $20 million worth of GBTC further demonstrates their strong interest in the cryptocurrency market.
This trend of large financial institutions investing in Bitcoin ETFs is gaining momentum. In a recent F13 form, which requires institutional managers to disclose their holdings, JPMorgan revealed that it manages approximately $760,000 worth of Bitcoin ETF shares on behalf of its clients. These holdings are spread across various offerings, including IBIT, BITO, FBTC, Grayscale Bitcoin Trust, and Bitwise Bitcoin ETF.
Wells Fargo has also entered the space, currently owning 2,245 shares of the Grayscale Bitcoin Trust, valued at nearly $123,000 at the time of writing. The involvement of well-established financial institutions underscores the increasing recognition of cryptocurrencies as a legitimate and attractive asset class for institutional investors.
It is important to note that the views and opinions expressed in this article, including those of the author and individuals mentioned, are for informational purposes only and should not be considered as financial or investment advice. Investing or trading in cryptocurrencies carries a risk of financial loss.
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