Susquehanna Pours $1.8B into Bitcoin ETFs, Leads Institutional Surge

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As a seasoned crypto investor with a keen eye on market trends, I am thrilled to see Susquehanna International Group’s significant investment in Bitcoin exchange-traded funds (ETFs). With over $1 billion allocated to various Bitcoin ETFs during the first quarter of 2024, this move underscores the growing institutional acceptance and interest in digital assets.

During the initial quarter of 2024, Susquehanna International Group, a prominent quantitative trading firm, invested more than a billion dollars in Bitcoin exchange-traded funds (ETFs).

Breakdown of Susquehanna’s Bitcoin ETF Portfolio

As a crypto investor following the latest developments in the market, I’m excited to learn that Susquehanna, a notable institutional investor, has disclosed its Bitcoin ETF holdings through a 13F SEC filing. The company spread its investments across several leading Bitcoin ETFs, with the largest portions allocated to Grayscale BTC Trust, Fidelity Advancement ETF, and iShares Bitcoin ETF by BlackRock. I’m specifically interested to know that Susquehanna holds around 17.27 million shares of Grayscale BTC Trust, worth roughly $1.09 billion, 1.35 million shares in Fidelity Advancement ETF, valued at about $83.74 million, and 583 thousand shares in BlackRock’s iShares Bitcoin ETF, which amounts to approximately $23.6 million. This information gives me valuable insights into the institutional investor’s confidence in these particular Bitcoin ETFs.

Further, Susquehanna holds significant investments in six other Bitcoin Exchange-Traded Funds (ETFs) apart from ARK 21, namely Bitwise, Valkyrie, Invesco Galaxy, VanEck, and WisdomTree. The combined value of these Bitcoin ETF investments amounts to nearly $1.8 billion.

Increasing and Decreasing Other Stakes

Susquehanna boosted its holdings in the ProShares Bitcoin Strategy ETF (BITO), owning a total of 7,907,827 shares as of March 31, worth around $255.42 million. This represents a significant jump of about 57.6% from its reported ownership in February, which was 5,021,149 shares.

As an analyst, I’ve noticed that the company owned some MicroStrategy (MSTR) stocks, implying indirect investment in Bitcoin through this holding. However, Susquehanna decided to decrease its ownership of these stocks by approximately 15% during their portfolio adjustments. Consequently, they sold off around 42,317 shares between February and March 31, resulting in a reduced position of 244,863 shares.

Other Investments and Portfolio Composition

The Bitcoin ETF holdings of Susquehanna currently represent the largest known quantities of this digital asset in existence. This notable investment serves as evidence of the company’s considerable influence within the burgeoning cryptocurrency sector.

As a researcher studying Susquehanna’s investment strategies, I’ve discovered that although the firm has invested substantially in Bitcoin ETFs, the cryptocurrency portion of its overall portfolio remains relatively modest. With an extensive portfolio valued at over $575.8 billion at the end of Q1, Susquehanna’s top investments are primarily focused on holdings in NVIDIA Corporation and the SPDR S&P 500 ETF Trust.

In the past three months, the company acquired additional convertible bonds from Convertible Zero, bonds issued by NRG Energy Inc., and preferred shares in Albemarle Corporation.

Increasing Institutional Interest in Bitcoin ETFs

As an analyst, I’ve noticed that Susquehanna’s recent decision to invest in Bitcoin ETFs aligns with a broader trend in the asset management industry. Hightower, another asset manager, has adopted a similar strategy, suggesting that institutional interest in Bitcoin and exchange-traded funds is increasing. However, it remains unclear what specifically drove Susquehanna to make this move at this time.

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2024-05-08 15:39