Millennium Management, a hedge fund with a diverse portfolio and around $ 48.3 billion of assets under management (AUM), has gained exposure to Bitcoin (BTC) through the Grayscale Bitcoin Trust (GBTC).
According to The Street, which cited two people familiar with the matter, Millennium Management put its weight on the GBTC with forays into arbitrage trading and the company’s direct exposure to grayscale has been seen as bullish for the industry.
Institutional buying of Bitcoin is on the rise as the most prominent names are taking a decisive position with different digital assets. Grayscale has particularly increased the number of cryptocurrencies it supports to include Chainlink (LINK) and Filecoin (FIL) in an attempt to meet institutional demand.
The number of Bitcoin positions Millennium has with Grayscale is undefined, as executives from neither company agreed to comment on the deal. However, as one of the largest hedge funds today, Millennium Management’s exposure to Bitcoin reaffirms growing institutional interest as the cryptocurrency travels towards mainstream adoption.
SEC ETF approval in sight?
The adoption of digital assets by publicly traded corporations and hedge funds highlights the need for a Bitcoin Exchange Traded Fund (ETF) product in US markets. While these types of products have been approved by authorities in Canada, Switzerland, and other less conservative markets, the United States Securities and Exchange Commission (SEC) is under increased pressure to allow the products to come to life in the markets. USA
Grayscale recently revealed intentions to convert its Grayscale Bitcoin Trust product into an ETF, a move that will shift the focus towards broader participation and more direct exposure to the emerging asset class by its clients. Other multinational financial institutions, including Fidelity, Morgan Stanley, and Goldman Sachs, are also in the rush to introduce a Bitcoin ETF to meet institutional demands. The free flow of money into crypto assets is changing the entire financial world, as the global cryptocurrency market capitalization surpassed $ 2 trillion last week.
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