By
Bena Ilyas
May 17th, 2024
The company is also holding large amount of shares of the Fidelity Bitcoin ETFs, as well as the ProShares Bitcoin Strategy ETF (BITO).
On Tuesday, May 7, Susquehanna International Group submitted the 13F-HR filing to the US Securities and Exchange Commission (SEC) stating that they purchased more than $1 billion worth of shares of different Bitcoin ETFs during the first quarter of the year.
As per the SEC disclosure, the firm owns 17,271,326 shares in the Grayscale Bitcoin Trust (GBTC) worth more than $1.09 billion as of March 31, 2024. In addition to this, the Susquehanna International Group owns 1,349,414 shares of the Fidelity Wise Origin Bitcoin Fund (FBTC), valued at roughly $83.74 million.
The investment firm has also been increasing its stake in other Bitcoin ETF offerings. For e.g. it has a stake in the ProShares Bitcoin Strategy ETF (BITO) that gives exposure to Bitcoin futures contracts. As shared by investment research firm Fintel, Susquehanna has been massively buying BITO shares during Q1. In February, the firm owned 5,021,149 BITO shares. this number surged by 58% the next month in March wherein it owned 7,907,827 BITO shares worth a staggering $255.42 million.
Additionally, the company also seeks direct exposure to spot BTC price through its investment in MicroStrategy, which has 214,000 BTC on its balance sheet. Susquehanna International Group owns 244,863 MSTR shares as of March 31. This is after the company reduced its stake by 15% in MicroStrategy as part of its portfolio rebalancing initiative.
In general, Susquehanna’s cryptocurrency allocation constitutes only a small portion of the trading firm’s portfolio, which closed the first quarter with a value exceeding $575.8 billion. Notably, the company’s primary investments include holdings in NVIDIA Corporation and the SPDR S&P 500 ETF Trust, which are index-linked.
Traditional Players Seeking Exposure to Bitcoin Funds
With the launch of the US spot Bitcoin ETFs after the approval by the US SEC, traditional financial players have started showing greater interest in Bitcoin funds and other digital assets. In the last month of April, Legacy Wealth Management and United Capital Management of Kansas invested a total of $40 million in Fidelity’s Bitcoin ETF.
These advisors are well-regarded by a substantial portion of the baby boomer demographic, which holds a considerable portion of the nation’s wealth. Legacy Wealth Management oversees assets totaling over $359 million, while United Capital Management of Kansas manages assets exceeding $436 million. Moreover, European banking giants like BNP Paribas have also been seeking exposure to Bitcoin ETFs.
Last week, the Bitcoin investment funds, however, registered net outflows. Amid the uncertainty in global macros, the activity around Bitcoin ETFs has subsided as investors wait on the sidelines for clear developments.