Susquehanna International Group, a quantitative trading firm, made a significant investment in Bitcoin exchange-traded funds (ETFs) during the first quarter of 2024. According to a regulatory filing on May 7, the firm disclosed that it purchased over $1 billion worth of shares in the Grayscale Bitcoin Trust (GBTC) and the Fidelity Wise Origin Bitcoin Fund (FBTC).
The filing revealed that Susquehanna now owns 17,271,326 shares of GBTC, valued at approximately $1.09 billion as of March 31. In addition, the firm reported owning 1,349,414 shares of FBTC, with a market value of around $83.74 million on the same date.
Furthermore, Susquehanna increased its stake in the ProShares Bitcoin Strategy ETF (BITO), a fund that provides exposure to Bitcoin futures contracts. According to investment research firm Fintel, the firm now holds 7,907,827 shares of BITO, valued at approximately $255.42 million as of March 31. This represents a 57.59% increase compared to the company’s previous filing in February.
While Susquehanna indirectly benefits from Bitcoin’s spot price through its investment in MicroStrategy stock, it reduced its stake in the company during the first quarter. The firm now holds 244,863 shares, down from 287,180 shares in February.
Despite its significant investment in Bitcoin funds, Susquehanna’s cryptocurrency allocation is a small portion of its overall portfolio, which was valued at over $575.8 billion at the end of the first quarter. The firm’s top investments include NVIDIA Corporation and the SPDR S&P 500 ETF Trust.
In addition to its Bitcoin holdings, Susquehanna acquired new investments in the convertible bonds firm Convertible Zero, bonds from NRG Energy Inc., and preferred stocks in Albemarle Corporation during the first quarter.
Bitcoin funds have gained popularity among trading firms and financial advisers as a way to gain exposure to digital assets. In April, Fidelity’s Bitcoin ETF attracted $40 million from Legacy Wealth Management and United Capital Management of Kansas. These traditional financial advisers each invested $20 million in FBTC, becoming top shareholders in the fund.
Legacy Wealth Management manages assets exceeding $359 million, while United Capital Management of Kansas oversees more than $436 million in assets. These firms are particularly popular among baby boomers, who hold a significant portion of the country’s wealth.
In conclusion, the interest in Bitcoin and cryptocurrency continues to grow, attracting not only trading firms like Susquehanna but also traditional financial advisers and investors from various sectors.