Bracebridge Capital, a prominent hedge fund headquartered in Boston managing approximately $12 billion in assets, has made waves in the crypto sphere with a substantial investment in spot Bitcoin exchange-traded funds (ETFs), totaling $363 million across three funds.
The fund's move, disclosed recently, demonstrates a strategic embrace of the flagship cryptocurrency, Bitcoin, through investments in the ARK 21Shares Bitcoin ETF (ARKB), BlackRock’s iShares Bitcoin Trust (IBIT), and the Grayscale Bitcoin Trust ETF (GBTC). Notably, Bracebridge is renowned for managing endowment funds for esteemed institutions like Yale and Princeton Universities, underscoring the significance of its foray into Bitcoin.
This announcement coincides with a broader trend of institutional interest in Bitcoin following the introduction of spot Bitcoin ETFs in the United States. Major financial institutions are increasingly venturing into these investments, attracted by the potential of cryptocurrencies.
In a series of disclosures, the state of Wisconsin emerged as the first local government entity in the U.S. to unveil a Bitcoin investment. Wisconsin's move involved the acquisition of 94,562 shares of BlackRock’s iShares Bitcoin Trust (IBIT), valued at nearly $100 million during the first quarter of the year. This development aligns Wisconsin with industry giants such as JPMorgan Chase and Wells Fargo, both of which disclosed their BTC exposure through investments in spot Bitcoin ETFs via 13F filings.
JPMorgan, with an investment of $731,246, diversified its holdings across BlackRock’s IBIT ETF, Bitwise’s BITB, Fidelity’s FBTC, and Grayscale’s GBTC. Similarly, Wells Fargo revealed holdings of $141,817 in GBTC. Noteworthy contributions from institutions like BNP Paribas and BNY Mellon further underscore the expanding institutional interest in Bitcoin.
BNP Paribas, Europe's second-largest bank with an asset management arm overseeing over $600 billion in assets, also dipped into the Bitcoin realm during the first quarter by acquiring shares of IBIT, amplifying the momentum of institutional adoption within the cryptocurrency space.