Over 50% of Top US Hedge Funds Investing in Bitcoin
More than half of America’s largest hedge funds are now investing in cryptocurrencies, primarily bitcoin, a strong indication of the growing institutional acceptance of the asset class, according to data from investment firm River.
The firm conducted an analysis of 25 of the largest U.S. hedge funds and discovered that more than half of them have exposure to bitcoin. Many of these funds acquired exposure by purchasing bitcoin exchange-traded funds (ETFs). In addition, 11 out of the top 25 registered investment advisors currently hold an allocation, along with numerous smaller ones.
Millennium Management, Mariner Investment Group, DE Shaw, Point72 Asset Management, Verition Fund Management, BlueCrest Capital Management, Elliot Investment Management, and Sculptor Capital Management, among other well-known hedge funds, have expanded the variety of assets in their portfolios by including bitcoin or bitcoin ETFs. Point72 Asset Management, for example, holds 1,089 bitcoin, while Schonfeld Strategic Advisors owns 6,734.
Millennium Management stands out with a nearly $2 billion exposure to bitcoin. The firm already manages $67.7 billion in assets and has allocated approximately 2.5% to bitcoin. Millennium has invested $1.94 billion in five spot bitcoin ETFs, according to disclosure forms filed with the US Securities and Exchange Commission earlier this year.
Bridgewater Associates, AQR Capital Management, and Balyasny Asset Management are among the prominent hedge funds that have refrained from investing in cryptocurrency, despite the trend.
