Bracebridge Capital, a hedge fund based in Boston that specializes in managing the financial assets of prestigious educational institutions, has made a significant move into Bitcoin exchange-traded fund (ETF) shares. With approximately $12 billion in net assets under management, the firm recently diversified its investment portfolio by acquiring a substantial $363 million worth of Bitcoin ETFs.
Amongst its acquisitions, Bracebridge holds the largest portion in the ARK 21Shares Bitcoin ETF (ARKB), with investments valued at $262 million. It also has $81 million invested in BlackRock’s iShares Bitcoin Trust (IBIT) and $20 million in the Grayscale Bitcoin Trust ETF (GBTC). This information was verified by Eric Balchunas, a senior ETF analyst at Bloomberg, who emphasized the growing interest of institutional investors in crypto assets.
In addition to its cryptocurrency investments, Bracebridge also holds significant stakes in other sectors, including biotechnology with Alvotech, a financial holding company called Ambac Financial, and the security company ADT. This diversification showcases the firm’s robust investment strategy that aims to balance risk and return across multiple markets.
The rise of Bitcoin ETF holdings by large financial institutions is an equally dynamic scenario. According to a recent F13 form, which requires institutional managers to disclose their holdings, JPMorgan manages approximately $760,000 worth of Bitcoin ETF shares on behalf of its clients. These holdings are spread across various offerings such as BlackRock’s iShares Bitcoin Trust, ProShares Bitcoin Strategy ETF (BITO), Fidelity’s Wise Origin Bitcoin Fund (FBTC), Grayscale Bitcoin Trust, and Bitwise Bitcoin ETF.
Wells Fargo is also involved in the Bitcoin ETF market, currently owning 2,245 shares of the Grayscale Bitcoin Trust, valued at nearly $123,000. This participation by well-established financial institutions highlights the increasing integration of cryptocurrencies as a legitimate and attractive asset class for institutional investors.
Disclaimer: 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 cryptocurrencies carries a risk of financial loss.
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