Hedge funds have significantly increased their holdings in spot Bitcoin ETFs, reaching a total value of $4.7 billion by the end of the second quarter. Among the notable players, Citadel, led by Ken Griffin, has made substantial investments, particularly in the ProShares Bitcoin Strategy ETFs. Citadel’s holdings of these ETFs tripled from the first quarter to the second, now amounting to 860,727 shares, currently valued at $19 million.
In addition to the ETF holdings, Citadel has strategically positioned itself with $67 million in call options and $52 million in put options for the ProShares Bitcoin Strategy ETFs. The firm’s total Bitcoin ETF holdings, including smaller positions across various ETFs, amount to less than $10 million.
Jane Street also made headlines with its first increase in IBIT, now worth $221 million in Q2. Meanwhile, European asset management company Capula held nearly $500 million in spot Bitcoin ETFs. However, Grayscale’s GBTC notably reduced its position by 86%, indicating a shift in strategy.
This surge in hedge fund activity highlights the growing interest and confidence in Bitcoin as an investment vehicle, despite ongoing market volatility. As the cryptocurrency market continues to evolve, these large-scale investments by hedge funds could signal a broader trend toward mainstream adoption of Bitcoin ETFs.
