Bracebridge Capital Becomes Largest Spot Bitcoin ETF Holder

Bracebridge Capital, a hedge fund that manages the finances of institutions like Yale University and Princeton University, has emerged as the largest holder of various spot Bitcoin exchange-traded funds (ETFs), according to a recent 13F filing with the Securities and Exchange Commission.

The Boston-based firm disclosed its ownership of shares in Ark Invest, BlackRock, and Grayscale U.S. spot Bitcoin ETFs.

Hedge Fund’s $434 Million Crypto Holdings

The breakdown of Bracebridge Capital’s holdings reveals a large stake in Ark Invest’s ARKB, with 4,327,380 shares, alongside 2,486,750 in BlackRock’s IBIT and 419,910 in Grayscale’s GBTC.

These holdings were reported to be valued at $307.2 million, $100.6 million, and $26.5 million, respectively. As of March 31, Bracebridge Capital’s holdings in these ETFs were valued at a total of $434 million.

The new high water mark (ex APs/market makers) for bitcoin ETF holdings has arrived. Boston-based Bracebridge Capital has reported owning $262m of $ARKB. It’s also the biggest owner of $IBIT too with $81m in that ETF. They also own $20m of $GBTC. They went wild basically. pic.twitter.com/RzdpwE2D0k

— Eric Balchunas (@EricBalchunas) May 13, 2024

Bloomberg ETF analyst Eric Balchunas highlighted Bracebridge Capital’s dominant position, particularly in Ark Invest and BlackRock’s Bitcoin ETFs. “The new high water mark for Bitcoin ETF holdings has arrived,” Balchunas stated.

Another filing from the State of Wisconsin’s Investment Board showed that the entity had bought $99 million worth of BlackRock’s Bitcoin ETF.

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ETFs Dominate Bracebridge Capital’s Portfolio

According to Ark’s fund page, Bracebridge Capital’s ARKB holdings also surpass those of the company spearheaded by Cathie Wood.

Balchunas also noted that these ETFs now make up a large portion of Bracebridge Capital’s overall portfolio, with ARKB alone accounting for 61.1% of its holdings, followed by IBIT and GBTC at 20% and 6.6%, respectively.

“What is also notable is the sheer number of holders that each has so far,” “IBIT is up to 250. That’s bonkers for the first quarter on the market,” Balchunas added.

What is also notable IMO is the sheer number of holders that each has so far.. $IBIT is up to 250. That’s bonkers for first quarter on mkt. Here’s comparison of the other ETFs launched same week-ish as btc ones. And we still have like a week of 13Fs to roll in yet. pic.twitter.com/rqs39T7WNw

— Eric Balchunas (@EricBalchunas) May 13, 2024

However, while the 13F filings provide valuable insights into Bracebridge Capital’s long positions, they do not capture the entirety of its investment strategy, as short positions are not required to be disclosed.

13F filings, submitted quarterly to the SEC, are reports filed by institutional investment managers overseeing a minimum of $100 million in equity assets under management. These filings offer a look into the manager’s stock holdings at the close of each quarter.

A community member advised against normalizing the calculation of fund portfolio weights based on the aggregation of the 13F reportable positions, stating that relying solely on the 13F report provides little insight into Bracebridge’s actual views on the reported securities.