Traditional finance (TradFi) firms are jumping on the Bitcoin bandwagon in a major way, according to new data from 13F filings with the Securities and Exchange Commission (SEC). A staggering 937 US banks, investment managers, hedge funds, and professional firms were invested in spot Bitcoin exchange-traded funds (ETFs) as of March 31, 2024, Vetle Lunde, a senior analyst at K33 Research, said in a post on X.
This surge in institutional interest is a significant development for the cryptocurrency market, signifying growing acceptance and adoption of Bitcoin by mainstream finance.
Hedge funds are at the forefront of this trend, with heavyweights like Millennium Management and Susquehanna International Group (SIG) making significant investments of $2 billion and $1 billion, respectively, in Bitcoin ETFs.
Other notable players include Bracebridge Capital ($434 million), Boothbay Fund ($377 million), and alternative asset manager Aristeia Capital ($163.4 million). Even major banks like Morgan Stanley ($269 million) and advisory firms like Pine Ridge Advisors ($205.8 million) are dipping their toes into the Bitcoin ETF market.
The trend extends beyond the biggest names. Investment firms like Hightower Advisors ($68 million), Fortress Investment Group ($53.6 million), and Cambridge Investment Research ($40 million) are also making notable investments.
Interestingly, major banks like JPMorgan Chase and Wells Fargo have taken a more cautious approach, with relatively small investments of $760,000 and $143,000, respectively.
