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

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Quantitative trading firm Susquehanna International Group made a significant move in the cryptocurrency market by allocating over $1 billion to Bitcoin exchange-traded funds (ETFs) during the first quarter of 2024. 

Breakdown of Susquehanna’s Bitcoin ETF Portfolio

Susquehanna revealed its Bitcoin ETF holdings in a 13F SEC filing, distributing its investments across various ETFs. The majority of its investments are in the three leading Bitcoin ETFs: Grayscale BTC, Fidelity Bitcoin, and BlackRock Bitcoin. Specifically, Susquehanna holds 17,271,326 shares of Grayscale BTC, valued at approximately $1.09 billion, 1,349,414 shares of Fidelity Bitcoin, valued at approximately $83.74 million, and 583,049 shares of BlackRock Bitcoin, valued at approximately $23.6 million. 

Additionally, Susquehanna has invested in six other BTC ETFs, including ARK21, Bitwise, Valkyrie, Invesco Galaxy, VanEck, and WisdomTree, with a total Bitcoin ETF investment of almost $1.8 billion.

Increasing and Decreasing Other Stakes

Susquehanna increased its stake in the ProShares Bitcoin Strategy ETF (BITO), which provides exposure to Bitcoin futures contracts. According to Fintel, Susquehanna's ownership of BITO shares reached 7,907,827 as of March 31, valued at approximately $255.42 million. This reflects a 57.59% increase from its February filing, where it held 5,021,149 shares.

The company also held some MicroStrategy (MSTR) stock, which gave it indirect exposure to Bitcoin's spot price. However, Susquehanna reduced its stake in MicroStrategy by almost 15% during portfolio rebalancing, dropping from 287,180 shares in February to 244,863 shares by March 31.

Other Investments and Portfolio Composition

Susquehanna's holdings of Bitcoin ETFs are now the largest recorded holdings of the asset to date. This substantial investment underscores the firm's significant presence in the cryptocurrency market.

Despite its significant investment in Bitcoin ETFs, Susquehanna's cryptocurrency allocation remains a small portion of its overall portfolio, which exceeded $575.8 billion at the end of the first quarter. The firm's top investments include holdings in NVIDIA Corporation and the SPDR S&P 500 ETF Trust. 

Additionally, in the last quarter, the firm also gained new shares of the convertible bonds firm Convertible Zero, bonds from NRG Energy Inc., and preferred stocks in Albemarle Corporation.

Increasing Institutional Interest in Bitcoin ETFs

Although it is not clear why the company decided to split up its Bitcoin ETF investments in this particular way, Susquehanna's move into Bitcoin ETFs follows a trend in the asset management industry. This investment follows a similar strategy by asset manager Hightower, indicating a growing interest in Bitcoin and exchange-traded funds among financial institutions. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice. 

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