Hedge Funds Increase Investment in Bitcoin ETFs IBIT and FBTC

Jakarta, Pintu News – In recent months, a number of leading hedge funds have increased their exposure to Bitcoin Exchange-Traded Funds (ETFs), specifically BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity Wise Origin Bitcoin Fund (FBTC). The move reflects growing institutional interest in crypto assets amid ongoing market volatility.

Increased Exposure by Leading Hedge Funds

The latest data shows that IBIT has accumulated about 655,570 BTC, while FBTC has about 200,712 BTC. Hedge funds such as Millennium Management, Capula Management, and Tudor Investment have significantly increased their holdings in these ETFs.

Millennium Management, for example, increased its stake in IBIT to 23.5 million shares worth $849 million. Similarly, Capula Management and Tudor Investment also expanded their holdings in this Bitcoin ETF. The move reflects a strategy of portfolio diversification and an attempt to capitalize on the potential growth in Bitcoin’s value as an increasingly widely accepted digital asset.

Also Read: Astonishing Prediction: Bitcoin Will Break $250,000, Really?

Arbitrage and Basis Trade Strategies

Many hedge funds capitalize on the price difference between the Bitcoin spot and futures markets through a strategy known as “basis trading”. In this strategy, investors buy Bitcoin or its ETFs on the spot market and sell Bitcoin futures contracts, capitalizing on the price difference to make a profit. This strategy is considered relatively safe as it does not depend on the overall direction of Bitcoin’s price movement.

However, the shrinking price gap between the spot and futures markets may reduce the profitability of this strategy, which may cause some hedge funds to adjust their positions in Bitcoin ETFs.

Impact on Market and Future Prospects

The increase in institutional investment in Bitcoin ETFs indicates a wider acceptance of cryptocurrencies as part of investment portfolios. However, Bitcoin price volatility and regulatory changes remain factors that influence investment decisions.

Going forward, wider adoption by financial institutions and supportive regulatory developments could strengthen the position of Bitcoin and related ETFs as legitimate and attractive investment instruments.

Also Read: XRP Ledger Activity Decline Reaches 90%: What’s the Impact?

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Jamie Redman. Behind the Curtain: Inside the Top Hedge Funds Loading up on IBIT and FBTC. Accessed May 26, 2025.
• Featured Image: Bitcoin News