Millennium Management Reduces Shares in FBTC, IBIT, and GBTC: Report

Investment giant Millennium Management has recently announced adjustments to its Bitcoin Exchange-Traded Funds (ETFs). Notably, as per a post shared by Trader T, a prominent voice on X, the hedge fund has lowered its position on Spot Bitcoin ETFs in the second quarter.

Millennium Management lowers its position on Spot Bitcoin ETFs in Q2 (reported value)$FBTC, -14%, owns $589 m$IBIT, -48%, owns $371 m$GBTC, -52% owns $82 m
but, adds more$BITB, +71%, owns $65 m$MSTR, +8837%, owns $121 m pic.twitter.com/Z91ff3A8eL

— Trader T (@pivfund2100) August 15, 2024

To elaborate, Millennium Management lowered its positions in Bitcoin ETFs, including Fidelity’s Fidelity Wise Origin Bitcoin Fund (FBTC), BlackRock’s iShares Bitcoin Trust ETF (IBIT), and Grayscale’s Grayscale Bitcoin Trust (GBTC). The highest reduction was seen in GBTC, as Millennium cut down the holdings by 52%, with the ETF’s value reaching around $82 million.

Similarly, the investment firm has also reduced its position in FBTC by 14%, with its value currently at $589 million. IBIT holdings were also cut down by almost 48%, making its current value reach about $371 million.

Despite the significant reduction in the portfolio, Millennium has made some additions too. The platform has increased its positions in Bitcoin ETFs such as Bitwise Bitcoin ETF (BITB) and MicroStrategy’s MSTR. While Millennium added 71% to BITB to own nearly $65 million in the ETF, MSTR saw a massive increase of 8837%, with its value currently at $121 million.

In May 2024, the firm revealed that it holds about $1.94 billion across five Spot Bitcoin ETFs. Impressed by the hedge fund’s huge ETF investments, Bloomberg’s ETF analyst Eric Balchunas hailed MicroStrategy as the “king of the bitcoin ETF holders.”

Millennium is king of the bitcoin ETF holders w/ about $2b across four ETFs. This is out of over 500 holders (about 200x the avg for new ETF). Majority are inv advisors (60%) but a big dose of HFs (25%). Never can be totally sure what HFs up to but they were def big buyers. pic.twitter.com/iVtVXjhId0

— Eric Balchunas (@EricBalchunas) May 15, 2024

At the time, BlackRock’s IBIT held the highest position in the hedge fund’s ETF allocation, with over $844 million invested. Fidelity’s FBTC was ranked second with over $806 million of shares. However, according to the recent update following the significant reduction in ETF shares, FBTC is in the first position, while IBIT is second in the rally.

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