Over Half of US Hedge Funds Hold Bitcoin

More than half of the top US hedge funds have disclosed investments in newly launched Bitcoin exchange-traded funds (ETFs) in the past year.

This interest has picked up significantly, especially given how BTC/USD continues to outperform the major stocks.

According to the data of investment firm River 13 of the 25 largest US hedge funds have allocated funds to Bitcoin ETFs by the first quarter of 2024 Millennium Management leads with 27,263 BTC worth $1.69 billion, which represents 2.5% of their total assets of $67.7 billion. Notably absent are firms such as Bridgewater Associates and AQR Capital Management.

At the same time, American corporations who see that cash reserves reach peak of $4.11 trillion in the first quarter of 2024, are beginning to allocate portions of Bitcoin or Bitcoin ETF.

This trend reflects growing confidence in Bitcoin both as a diversification tool and as a hedge against market volatility.

Bitcoin’s impressive 94% return in the first half of 2024 outstrips the gains of stocks like Apple and Tesla, underscoring its appeal on Wall Street.

Analysts predict that Bitcoin’s role as a hedge against traditional assets such as gold will continue to strengthen, with forecasts pointing to significant growth in market capitalization relative to gold by 2025.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.