2024

Bitcoin ETF

Bitcoin

Apple

Notable

Over half of the top American hedge funds have disclosed exposure to newly launched spot Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) exchange-traded funds (ETFs) in a year, as BTC/USD has significantly outperformed major stocks and indexes.
<h2 id="one-hedge-fund-has-2-5-of-its-portfolio-in-bitcoin">One hedge fund has 2.5% of its portfolio in Bitcoin</h2>
Data from investment firm River <a href="https://blog.river.com/52-of-top-us-hedge-funds-own-bitcoin-etfs/" target="_blank" rel="noopener nofollow">reveals</a> that 13 out of the top 25 United States hedge funds had owned Bitcoin ETFs by the end of Q1 2024. Notable among these is Millennium Management, which had 27,263 BTC worth $1.69 billion, making up about 2.5% of its total assets under management worth $67.7 billion.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-07/7309d1bc-7fd7-43a6-8844-4b9a4fef3c4d.png" alt="" title="">
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 Bitcoin ETF exposure across top 25 U.S. hedge funds. Source: River
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 Other significant players include Schonfeld Strategic Advisors, with 6,734 BTC, and Point72 Asset Management, with 1,089 BTC. In contrast, some top hedge funds, such as Bridgewater Associates, AQR Capital Management and Balyasny Asset Management, have yet to invest in Bitcoin ETFs.
Interestingly, Bitcoin’s growing acceptance coincides with a rise in the cash reserves across U.S. companies. Notably, the cash or cash equivalents held by corporations reached a record high of $4.11 trillion in Q1 2024, according to an&nbsp;<a href="https://www.bloomberg.com/news/articles/2024-06-13/cash-holdings-by-us-corporates-surge-to-4-11-trillion-in-the-first-quarter" target="_blank" rel="noopener nofollow">analysis</a> by treasury advisory firm Carfang Group.&nbsp;
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-07/5ccaa695-24ff-4aab-aa80-b1b3feb86157.png" alt="" title="">
 <figcaption style="text-align: center;">
 Cash holdings by U.S. companies in recent quarters. Source: Bloomberg&nbsp;
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Some — if not most — of these companies, namely <a href="https://cointelegraph.com/news/reddit-converts-excess-cash-into-bitcoin-and-ethereum">Reddit</a>, <a href="https://cointelegraph.com/news/semler-scientific-now-holds-828-bitcoin-150m-plan-buy-more">Semler Scientific</a>, <a href="https://cointelegraph.com/news/jpmorgan-chase-shares-spot-bitcoin-etf">JPMorgan</a>, <a href="https://cointelegraph.com/news/wells-fargo-grayscale-proshares-bitcoin-etf">Wells Fargo</a>&nbsp;and others,&nbsp;have allocated a small portion of their cash reserves to Bitcoin or Bitcoin ETFs.
This trend indicates that U.S. firms, including hedge funds and corporations, have become more confident in treating Bitcoin as a viable asset for diversification and hedging against traditional market risks.
<h2 id="bitcoin-outperforming-apple-tesla-stocks-in-2024">Bitcoin outperforming Apple, Tesla stocks in 2024</h2>
Wall Street’s interest in Bitcoin grows further as the cryptocurrency fares better than top stocks and stock indexes.
Notably, BTC’s returns in the first half of 2024 were about 94%. In comparison, the U.S. benchmark S&amp;P 500 index rose 23%, while the Dow Jones Industrial Average grew 14% in the same period.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-07/7e202edd-4cae-4c62-8e56-9e1e982a1806.jpeg" alt="" title="">
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 Bitcoin relative growth. Source: LookIntoBitcoin
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Even Apple and Tesla stocks underperformed Bitcoin, returning 10% and -29%, respectively, year-to-date. However, Nvidia, which recently became the <a href="https://cointelegraph.com/news/nvidia-world-most-valuable-publicly-traded-company">world’s most valuable publicly traded company</a>, outperformed Bitcoin, rising by over 150% in the first six months of 2024 due to an ongoing <a href="https://cointelegraph.com/news/ai-artificial-intelligence-killer-app-prove-bubble-goldman-sachs-mit">artificial intelligence boom</a>.
Related:&nbsp;<a href="https://cointelegraph.com/news/63-banks-brink-insolvency-bitcoin-target-100k">63 US banks on the brink of insolvency: Why Bitcoin’s next target is $100K</a>
Veteran trader Peter Brandt anticipates Bitcoin’s relevance growing as a hedging asset, particularly against traditional safe havens like gold. He <a href="https://cointelegraph.com/news/bitcoin-worth-100-oz-gold-veteran-trader-peter-brandt">noted</a> that BTC’s market capitalization could rise 230% against gold after 2025.
Earlier this year, ARK Invest’s annual research report concluded that institutional portfolios aiming for maximized risk-adjusted returns <a href="https://cointelegraph.com/news/ark-invest-bitcoin-portfolio-allocation-19-percent">should have allocated 19.4% to Bitcoin in 2023</a>.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Over 50% of US hedge funds have exposure to Bitcoin as BTC crushes stocks in 2024

Inhaltsverzeichnis

Cointelegraph

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