From theblock by Jason Shubnell

Quick Take

Institutional investors are reshaping their portfolios as Bitcoin  BTC +0.41% ETFs continue to gain traction on Wall Street. The latest 13F filings reveal how hedge funds and big banks adjusted their positions in major Bitcoin ETFs during Q3, highlighting shifting strategies and growing adoption of crypto-backed assets.

Each quarter, institutional investment managers with at least $100 million in equity assets under management file 13F reports with the U.S. Securities and Exchange Commission. The filings, which are required within 45 days of the end of each quarter, provide a view of the manager's stock holdings, although they do not disclose any short positions.

13Fs can be a way to get a glimpse into how the largest portfolios and some of the most influential money managers play the market. The latest batch of filings shows that the launch of spot Bitcoin ETFs in January has allowed crypto to seep even deeper into Wall Street's foundations. 

Here’s a brief glimpse into how some of the most prominent hedge funds and big banks changed their holdings in the third quarter of 2024. These holdings are as of Sept. 30.

BlackRock's iShares Bitcoin Trust ETF (ticker: IBIT) leads the way with nearly 700 institutional owners and shareholders holding a total of 160.2 million shares, according to Fintel data. The ETF has $42 billion in assets under management.

Millennium Management remains the dominant holder of IBIT, adding 12.6 million shares this quarter to reach a total of 23.5 million shares valued at $848 million. The hedge fund, founded by Wall Street legend Israel Englander, also maintains a significant position in the Fidelity Wise Origin Bitcoin Fund (FBTC), holding 11.6 million shares worth $644 million.

Capula, one of Europe's leading hedge funds, increased its stakes, purchasing an additional 1.1 million shares in both IBIT ($308 million) and FBTC ($288 million).

Meanwhile, some players reduced or exited their positions. Steve Cohen's Point72 exited its positions in both IBIT and FBTC, while Jane Street nearly eliminated its holdings in IBIT, selling 6.4 million shares. However, Jane Street maintained significant holdings in other Bitcoin ETFs, including ARK 21Shares Bitcoin ETF (ARKB) with 4.4 million shares ($283 million), ProShares Bitcoin ETF (BITO) with 6.9 million shares ($133 million), and FBTC with 2.5 million shares ($142 million).

Tudor Investment Corporation, helmed by Paul Tudor Jones, held over 4.4 million IBIT shares now worth $230 million.

Goldman Sachs strengthened its investment in Bitcoin ETFs, purchasing 5.77 million shares of IBIT to bring its total holdings to 12.7 million shares worth $710 million. This cements Goldman as the second-largest IBIT holder.

Morgan Stanley reduced its exposure, selling 449,802 IBIT shares, which lowered its Bitcoin ETF portfolio value to $183.39 million, down from $203 million in the previous quarter.

In contrast, JPMorgan Chase made negligible reentries into Bitcoin ETFs, buying 387 IBIT shares ($13,982) and 213 FBTC shares ($11,877), bringing its total exposure to nearly $65,000.

Total bitcoin ETF assets under management now stand at $92 billion, according to The Block's data dashboard.

“With most institutional investors re-examining their anti-crypto stance, we have a long journey of fresh structural allocations to this market," Bernstein analysts wrote in a note this week. "If you are long, we expect you will be on the right side of bitcoin history.”

Of note, spot Bitcoin ETFs could also see options trading begin as early as this week amid regulatory clearances over the past few days.