In the first quarter of 2024, Susquehanna International Group, a quantitative trading firm, made a significant investment in Bitcoin exchange-traded funds (ETFs), purchasing over $1 billion worth of shares. The firm disclosed its ownership of 17,271,326 shares in the Grayscale Bitcoin Trust (GBTC), valued at around $1.09 billion as of March 31, 2024. Additionally, Susquehanna reported owning 1,349,414 shares of the Fidelity Wise Origin Bitcoin Fund (FBTC), with a value of approximately $83.74 million on the same date.
Furthermore, the firm increased its stake in the ProShares Bitcoin Strategy ETF (BITO), which provides exposure to Bitcoin futures contracts. According to investment research firm Fintel, Susquehanna’s ownership of BITO increased to 7,907,827 shares as of March 31, valued at approximately $255.42 million. This represents a 57.59% increase from a previous filing in February.
Although Susquehanna indirectly held exposure to Bitcoin’s spot price through its holdings in MicroStrategy stock (MSTR), which holds 214,400 BTC, the firm reduced its stake in MicroStrategy by almost 15% during portfolio rebalancing. Its ownership decreased from 287,180 shares in February to 244,863 shares on March 31.
Despite its significant investment in Bitcoin funds, Susquehanna’s cryptocurrency allocation is only a small portion of its overall portfolio, which was valued at over $575.8 billion at the end of the first quarter. The company’s top investments include NVIDIA Corporation and the SPDR S&P 500 ETF Trust.
In addition to Bitcoin funds, Susquehanna also acquired new holdings in the first quarter. These include shares in the convertible bonds firm Convertible Zero, bonds from NRG Energy Inc., and preferred stocks in Albemarle Corporation.
Bitcoin funds are becoming increasingly popular among trading firms and financial advisers, who seek exposure to digital assets. In April, Fidelity’s Bitcoin ETF received a $40 million investment from two traditional financial advisers, Legacy Wealth Management and United Capital Management of Kansas. Each adviser invested $20 million in FBTC, becoming significant shareholders in the fund.
These financial advisers are particularly popular among baby boomers, who hold a substantial portion of the country’s wealth. Legacy Wealth Management manages assets exceeding $359 million, while United Capital Management of Kansas oversees over $436 million in assets.