Susquehanna International Group Adds $1B in Bitcoin ETF to Portfolio
According to a May 7 13F-HR filing, quantitative trading firm Susquehanna International Group bought more than $1 billion worth of Bitcoin (BTC) exchange-traded funds (ETFs) in the first quarter of 2024.
The firm disclosed to the Securities and Exchange Commission that it owned 17,271,326 shares in Grayscale Bitcoin Trust (GBTC) as of March 31, 2024, with a market value of approximately $1.09 billion. In addition, Susquehanna reported holding 1,349,414 shares of Fidelity Wise Origin. Fund (FBC), valued at $83.74 million on the same day.
Moreover, the company increased its stake in the ProShares Bitcoin Strategy ETF (BITO), which gives investors exposure to Bitcoin futures contracts. Susquehanna held 7,907,827 BITO shares valued at $255.42 million as of March 31, up 57.59 percent from a listing of 5,021,149 shares in February, according to investment research firm Fintel.
The company has indirect exposure to the Bitcoin spot price through MicroStrategy Stock (MSTR), which holds 214,400 BTC on its balance sheet. However, Susquehanna reduced its stake in MicroStrategy from 287,180 shares in February to 244,863 shares as of March 31 as part of a portfolio rebalancing.
Overall, Susquehanna's cryptocurrency holdings represent a small fraction of the firm's portfolio, which was valued at more than $575.8 billion in the first quarter.
Among the company's top investments are NVIDIA Corporation and the index-linked SPDR S&P 500 ETF Trust. In addition to Bitcoin funds, Susquehanna's new holdings in recent quarters include convertible bond company Convertible Zero, NRG Energy Inc. They include bonds and preferred stock in Albemarle Corporation.
Bitcoin funds are being used by businesses and financial advisors to gain exposure to digital assets. In April, Fidelity's Bitcoin ETF received $40 million from two traditional financial advisors, Legacy Wealth Management and United Capital Management of Kansas. Each fund invested $20 million in FBTC, joining the fund's top shareholders.
The consultants are very popular among the baby boomers who have a large share of the country's wealth. Legacy Wealth Management manages more than $359 million in assets, while Kansas United Capital Management manages more than $436 million in assets.
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