Millennium Management, a hedge fund with a diverse portfolio and approximately $ 48.3 billion in assets under management, has reportedly gained exposure to Bitcoin (BTC) through the Grayscale Bitcoin Trust (GBTC).
According to The Street, who quoted two people familiar with the matter, Millennium Management threw its weight on the GBTC by looking at arbitrage trading and the company’s direct exposure to grayscale was seen as bullish for the industry.
The institutional buy-up of Bitcoin is increasing as prominent names with different digital assets occupy a crucial position. Grayscale in particular has increased the number of supported cryptocurrencies Chain link (LINK) and Filecoin (FIL) to meet institutional demand.
The number of Bitcoin positions Millennium holds at Grayscale is undefined as none of the company’s executives have agreed to comment on the deal. However, as one of the largest hedge funds today, Millennium Management’s exposure to Bitcoin reinforces growing institutional interest as cryptocurrency enters the mainstream.
SEC ETF approval in sight?
The adoption of digital assets by publicly traded companies and hedge funds highlights the need for a Bitcoin Exchange Traded Fund (ETF) product in American markets. While these product types have been approved by authorities in Canada, Switzerland, and other less conservative markets, the US Securities and Exchange Commission is under increasing pressure to bring the products to life in the United States.
Grayscale recently announced its intention to convert its Grayscale Bitcoin Trust product into an ETF. This move will shift the focus to broader ownership and more direct engagement of its clients in the emerging asset class. Other multinational financial institutions including loyaltyMorgan Stanley and Goldman Sachs are also in the running to launch a Bitcoin ETF to meet institutional needs. The free flow of money in crypto assets is changing the entire financial world as global market cap for cryptocurrencies surpassed $ 2 trillion in the past week.
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