Bracebridge Capital Emerges as the Largest Holder of Bitcoin ETFs
Bracebridge Capital, a hedge fund managing institutional finances like Yale University and Princeton University, has recently disclosed its significant ownership in various spot Bitcoin exchange-traded funds (ETFs). The Boston-based firm revealed its stakes in Ark Invest, BlackRock, and Grayscale U.S. spot Bitcoin ETFs.
Hedge Fund’s $434 Million Cryptocurrency Holdings
Bracebridge Capital holds a substantial amount in Ark Invest’s ARKB, with over 4.3 million shares, along with holdings in BlackRock’s IBIT and Grayscale’s GBTC. These holdings amount to $307.2 million, $100.6 million, and $26.5 million, respectively. As of March 31, their total holdings in these ETFs equated to $434 million.
- Ark Invest’s ARKB – 4,327,380 shares
- BlackRock’s IBIT – 2,486,750 shares
- Grayscale’s GBTC – 419,910 shares
Bloomberg ETF analyst Eric Balchunas highlighted Bracebridge Capital’s dominant position in Ark Invest and BlackRock’s Bitcoin ETFs, noting it as a new high water mark for Bitcoin ETF holdings.
ETFs Dominate Bracebridge Capital’s Portfolio
According to Ark’s fund page, Bracebridge Capital’s ARKB holdings surpass those of Cathie Wood’s company. These ETFs now represent a substantial portion of Bracebridge Capital’s overall portfolio, with ARKB accounting for 61.1% of its holdings, followed by IBIT and GBTC at 20% and 6.6%, respectively.
- ARKB – 61.1%
- IBIT – 20%
- GBTC – 6.6%
Balchunas also noted the significant number of holders for each ETF, highlighting IBIT’s 250 holders for the first quarter since its launch.
While the 13F filings offer insights into Bracebridge Capital’s long positions, they don’t capture the entirety of its investment strategy, as short positions are not disclosed. The filings are reports filed by institutional investment managers overseeing a minimum of $100 million in equity assets under management, providing a glimpse into their stock holdings at the end of each quarter.
Insight into Investment Strategy
A community member advised against solely relying on the 13F report for the calculation of fund portfolio weights, emphasizing that it provides limited insight into Bracebridge’s actual stance on the reported securities.
Hot Take: Bracebridge Capital and Bitcoin ETF Dominance
Bracebridge Capital’s significant holdings in various Bitcoin ETFs showcase their position as a major player in the cryptocurrency market, especially in Ark Invest and BlackRock’s offerings. The hedge fund’s reported stake further solidifies the growing interest and investment in digital assets within traditional finance.