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We’re the crypto newsletter that’s more exhilarating than a group of rebels fighting against a tyrannical empire in a galaxy far, far away... 🌌⚔️
What we’ve cooked up for you today…
🤑 Huge ETF HODLer revealed
🤔 Who’s buying the Bitcoin ETFs?
🌊 Coinbase records huge outflow
💰 And more…
MARKET WATCH ⚖️
Only the top 20 coins measured by market cap feature in this section
HUGE ETF HODLER REVEALED 🤑
BREAKING: Millennium Management discloses ~$2B in Bitcoin ETF holdings
Yesterday was the quarterly 13F filing deadline day.
And it’s been revealed that international hedge fund Millennium Management has bought close to $2 billion in Bitcoin ETFs.
Here’s a breakdown of their holdings:
BlackRock’s IBIT: $844.2 million
Fidelity’s FBTC: $806.7 million
Grayscale’s GBTC: $202 million
Ark’s ARKB: $45 million
Bitwise’s BITB: $44.7 million
This makes Millennium the largest individual holder of IBIT & FBTC.
Currently Millennium has $69 billion in assets under management.
Which makes their Bitcoin investment ~2.9% of their total assets.
ETF analyst Eric Balchunas mentioned that Millennium’s investment into Bitcoin is ~200x the average new ETF holder.
It’s uncommon for a firm to come out of the gate with $2 billion invested straight away.
That’s absurd.
The 13F filings also revealed what kind of investors are purchasing the Bitcoin ETFs. (we’ll break this down further in the next section)
Eric Balchunas analysed BlackRock’s holder type:
The list includes:
Hedge Fund Manager
Investment Advisor
Private Equity
Pension Fund
Brokerage
Bank
Trust
Insurance Company
Holding Company
Family Office/Trust
Balchunas explained that new ETF launches don’t normally see such a wide array of investor types.
Just another stat to show how successful the Bitcoin ETFs have been…
Keep in mind, big institutions & asset managers take ages to allocate toward a new asset class.
Everything we have seen so far is extremely encouraging for the rest of the year.
As we keep saying:
Slowly at first, then all at once. 🐑
TOGETHER WITH BULLSEYE TRADES 🎯
This tiny company has all but cemented itself in the future list of bitcoin mining giants.
An industry shakeup of environmental regulations could spell catastrophe for others, while this company begins to soar.
The underlying factors?
Cheap production and carbon neutral mining.
But that’s just the start of it.
Subscribe to Bullseye Trade to learn more.
WHO’S BUYING THE BITCOIN ETFs? 🤔
No one expected this amount of professional investors to disclose holding the Bitcoin ETFs.
That’s the latest message out from Matt Hougan.
Matt Hougan is the Chief Investment Officer at Bitwise, the 4th largest Bitcoin ETF issuer.
Now that the quarterly 13F filings have all been submitted, we can breakdown exactly who has been buying the Bitcoin ETFs.
In his latest investment memo, this is exactly what Matt Hougan has done.
Let’s jump in.
Takeaway #1: The professional’s are here
Matt analysed all 13F filings for each of the 11 Bitcoin ETFs.
His conclusion?
A surprising amount of professional investors own Bitcoin ETFs, including giants such as:
Hightower Advisors: The #2 RIA in the United States managing $122 billion in assets. They reported $68 million in Bitcoin ETFs
Bracebridge Capital: Hedge fund that manages money for Yale and Princeton. They reported $434 million in Bitcoin ETFs
Cambridge Investment Research: A 40-year old firm with over $170 billion in assets. They reported $40 million in Bitcoin ETFs
The list goes on…
In total, 563 professional investment firms reported owning ~$3.5 billion worth of Bitcoin ETFs.
Takeaway #2: A historic scale of professional investor ownership
The amount of professional investors who reported holding the Bitcoin ETFs blew all expectations out of the water.
“This scale of ownership is off the charts for a new ETF. Most ETFs attract very few 13F filers in their first few months on the market.”
Matt notes that previously the gold ETF was considered the most successful ETF launch ever. ($1 billion in its first five days)
But its first 13F filing only saw 95 professional firms invest in the product…
Takeaway #3 Despite this, retail is still the majority
Matt explained:
“While I’d consider $3-5 billion and 563-700 firms a huge success, it’s important to remember that bitcoin ETFs have $50 billion in assets under management. As a percentage of total investment, therefore, professional investors own just 7-10% of all assets.”
The due diligence that these professional investors have to go through takes time (we’re talking up to a year).
And as Bitwise has been in operation for seven years, Matt has first hand experience when it comes to onboarding other institutions.
That’s why Matt believes this is only just the beginning:
“This tells me that the allocations we see in recent 13F filings are just a down payment. Hightower Advisors may have $68 million allocated to bitcoin ETFs today… But it’s just 0.05% of their assets…. That allocation will build over time. And to put it in context, a 1% allocation of their portfolio to bitcoin would equate to $1.2 billion—all from a single firm.”
COINBASE RECORDS HUGE OUTFLOW 🌊
Coinbase just recorded it’s third largest Bitcoin outflow of 2024.
According to Arkham Intelligence, two transactions originating from Coinbase cold storage were detected.
Both of these transactions were for 8,000 BTC.
Bringing the total withdrawal to 16,000 Bitcoin (worth ~$1 billion).
The chart below shows that Coinbase’s Bitcoin balance has been steadily declining over 2024.
At the start of the year, Coinbase had ~418,000 Bitcoin.
Now? ~267,000 Bitcoin.
That’s a decrease of 151,000 Bitcoin.
Which is worth ~$9.97 billion at todays prices.
This latest withdrawal of 16,000 Bitcoin is the third largest outflow day of 2024.
As we’ve said previously, decreasing exchange balances is a very clear bullish signal.
Over time, there continues to be less and less Bitcoin supply available for sale on exchanges.
Couple this with increasing demand, the Bitcoin price is forced to move upwards. (it’s simple economics)
Patience. 🧘
CRACKING CRYPTO 🥜
Morgan Stanley reveals $270 million investment in Bitcoin ETFs, making it top GBTC holder. Morgan Stanley was one of several companies that disclosed spot Bitcoin ETF ownership on May 15.
Yes, Vanguard’s new CEO supported BlackRock’s bitcoin ETF launch. Vanguard's new CEO led BlackRock’s ETF business as the company spurred an industry double-take with its bitcoin ETF filing last year.
Bitcoin Hits $66K as Soft Inflation Data Sparks Crypto Rally. Sluggish U.S. retail sales and softer inflation reports have opened the way for the next leg up in the crypto rally.
Over 1 million new crypto tokens have been launched since April. More than one million new tokens have been launched in the last month, with Solana and Base becoming hotspots for degens whipping up new memecoins.
WHAT WE’RE READING 📚
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CAN YOU CRACK THIS NUT? ✍️
Select your answer below and you’ll be redirected to the results page. (answer explanation can be found after “Meme Corner”)
Dogecoin is an example of a...
MEME CORNER 😂
Because what would the crypto world be without its share of memes?
Trivia Answer: B) “Memecoin” or altcoin 🥳
Dogecoin, created in 2013, is often cited as the original meme coin.
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