Major Trading Firm Purchased $1B Worth Of Bitcoin ETFs In Q1

Susquehanna International Group, a prominent quantitative trading firm, has significantly expanded its holdings in various Bitcoin-related exchange-traded funds (ETFs), according to the latest SEC filings.

What Happened: As of the first quarter of 2024, the firm's investment in these digital asset vehicles surpassed the $1 billion mark, Cointelegraph reported.

The firm’s recent 13F-HR filing, dated May 7, revealed its substantial acquisition of 17,271,326 shares in the Grayscale Bitcoin Trust GBTC, which had a market value of approximately $1.09 billion by March 31, 2024.

Additionally, Susquehanna has taken a sizeable position in the Fidelity Wise Origin Bitcoin Fund FBTC, holding 1,349,414 shares valued at around $83.74 million.

Further diversifying its Bitcoin exposure, Susquehanna increased its investment in the ProShares Bitcoin Strategy ETF BITO by 57.59%, now owning 7,907,827 shares worth about $255.42 million.

This ETF offers exposure to Bitcoin futures rather than direct holdings of the cryptocurrency.

Susquehanna has also ventured into indirect Bitcoin investments through its shares in MicroStrategy.

Known for holding a substantial amount of Bitcoin on its balance sheet, MicroStrategy MSTR represents another facet of Susquehanna's strategy to gain exposure to the digital currency’s price movements.

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Notably, Susquehanna scaled back its MicroStrategy holdings from 287,180 shares to 244,863 shares during the quarter.

Despite these substantial figures, the firm’s cryptocurrency-related investments still constitute a minor portion of its vast $575.8 billion portfolio, which predominantly features heavyweights like NVIDIA Corporation and the SPDR S&P 500 ETF Trust.

Among Susquehanna's new acquisitions this quarter are investments in Convertible Zero, NRG Energy Inc., and preferred stocks in Albemarle Corporation.

The trend of traditional trading firms venturing into Bitcoin funds continues to gain momentum. In April, Fidelity's Bitcoin ETF attracted $40 million from Legacy Wealth Management and United Capital Management of Kansas.

These firms, managing assets in the hundreds of millions, cater largely to a demographic of baby boomers, a group that controls a significant portion of America's wealth.

What’s Next: As the landscape of digital assets evolves, these developments are set to be a key topic at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

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