KEY POINTS
- Susquehanna bought Bitcoin ETFs from BlackRock, ARK 21 Shares, and more
- The market maker's largest bet was on Grayscale's GBTC
- SIG is the second financial institution so far this week that disclosed BTC ETF ownership
Quantitative trading firm and market maker Susquehanna International Group (SIG) on Tuesday disclosed that it has purchased over $1 billion worth of Bitcoin exchange-traded funds (ETFs) during the first quarter of the year.
In 13-F documents filed with the U.S. Securities and Exchange Commission (SEC), Susquehanna, which has over $480 billion in assets under management (AUM), revealed that it purchased millions in BTC ETFs from nearly all issuers, including Valkyrie's BTF, Invesco Galaxy's BTCO, and WisdomTree's BTCW.
Among SIG's top Bitcoin ETF buys are 560,832 shares of Bitwise's BITB worth more than $21.7 million. It also bought 583,049 shares of BlackRock's ever-popular IBIT worth $23.5 million.
The market maker's top two purchases are with Fidelity's FBTC (1,349,414 shares worth some $83.7 million) and Grayscale's GBTC (17,271,326 shares worth a little over $1 billion).
Susquehanna's disclosure marks another significant development in the traditional financial realm, considering the trading behemoth's position as a key market maker for thousands of Nasdaq stocks. It is also considered one of the largest option market makers in the United States.
The revelation also comes on the heels of Hightower Advisors' disclosure that it purchased around $68 million worth of Bitcoin ETFs across six issuers. Like SIG, the asset management firm's largest BTC ETF investments were with Grayscale's GBTC, a once unpopular choice for retail investors who opted for the cheaper offer from BlackRock.
The financial products offer institutions a way to gain exposure to the pricing movements of Bitcoin, the world's largest cryptocurrency by market value. It is worth noting that with BTC ETFs, investors cannot directly hold their Bitcoins themselves. On the other hand, it is under a regulated system, which may contribute to its rising popularity among various financial entities.
Crypto users on X (formerly Twitter) have since picked up Susquehanna's move, with many pointing out how crypto whales "buy the fear" at a time when markets are volatile and digital asset holders begin doubting their crypto investments.
One user is expecting more whales – entities or individuals with the largest cryptocurrency treasuries – to snap up "all the Bitcoin" in the market as time goes by. Another user noted that SIG's disclosure only signals "growing institutional interest in cryptocurrency."
"Everyone is coming for your BTC. Be prepared," one user said. Another user echoed the sentiment, saying "institutional FOMO (fear of missing out) is about to go parabolic" so retail investors in digital assets should "buckle up."
That's a HUGE move and is gonna be a a game-changer.💰
— Dividends Growth Hustler (@DividendIncome_) May 7, 2024
Institutional money is flooding into the crypto market. 🌊
Institutional FOMO is about to go parabolic.
Buckle up, the real bull run might just be starting. 🐂
