Bracebridge Capital Emerges as Top Holder of Spot Bitcoin ETF (BTC): A Major Shift in Crypto Investment Landscape

• Bracebridge Capital, a hedge fund managing 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.
• As of March 31, Bracebridge Capital’s holdings in these ETFs were valued at a total of $434 million.

Bracebridge Capital, a Boston-based hedge fund, has become the largest holder of various Bitcoin ETFs, with holdings valued at $434 million as of the end of the first quarter.

Hedge Fund’s $434 Million Crypto Holdings

Bracebridge Capital’s holdings include 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.

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. 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.

Conclusion

The 13F filings provide valuable insights into Bracebridge Capital’s long positions, but they do not capture the entirety of its investment strategy, as short positions are not required to be disclosed. These filings offer a look into the manager’s stock holdings at the close of each quarter. However, 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.