Summary:
Billionaires are heavily investing in the iShares Bitcoin Trust ETF (IBIT).
The ETF became the fastest-growing ETF in history, reaching $40 billion in AUM in just 211 days.
Notable billionaires like Israel Englander and Paul Tudor Jones have invested hundreds of millions.
Michael Saylor predicts Bitcoin could reach $13 million by 2045, implying a 13,100% gain.
About 60% of funds now have at least 1% in cryptocurrency.
Following the moves of billionaires across Wall Street can provide valuable insight into the strategies of some of the smartest investors around. While any single trade rarely signifies much, interesting trends can emerge when viewed in aggregate.
One fund that has seen an incredible inflow of capital from these investors over the last year is the iShares Bitcoin Trust ETF (IBIT). This exchange-traded fund (ETF) is the largest of the new spot Bitcoin ETFs that launched in January after receiving regulatory approval. Billionaire money managers have eagerly bought into this fund, which has quickly swelled in size.
Today's Change
- (-2.72%) -$1.53
- Current Price: $54.70
The demand was so high that the iShares Bitcoin Trust ETF became the fastest-growing ETF in history, reaching $40 billion in assets under management (AUM) in just 211 days, smashing the previous record of 1,253 days.
Some of the notable billionaires with significant stakes include:
- Israel Englander, Millennium Management: $849 million
- Yan Huo, Capula Management: $308 million
- Steven Schonfeld, Schonfeld Strategic Advisors: $195 million
- Dan Och, Sculptor Capital: $195 million
- Paul Tudor Jones, Tudor Investments: $160 million
While the differences among the spot Bitcoin ETFs are minimal, the iShares ETF stands out as the best option for its size, which means maximum liquidity, and it also has a low expense ratio of just 0.25%, costing only $2.50 for every $1,000 invested.
There Could Be a Whole Lot of Upside
Ultimately, all these funds serve as vehicles for investing in Bitcoin. So, what kind of upside does Bitcoinâand therefore this ETFâhave? If you believe MicroStrategy's Executive Chairman Michael Saylor, the answer is a whole lot. Saylor claims that Bitcoin could reach $13 million by 2045, representing a potential gain of 13,100% from today's price.
Saylor isn't alone in making bold claims; Cathie Wood of Ark Invest predicts Bitcoin could hit as high as $3.8 million within five years, which is a more aggressive target.
Both investors emphasize that institutional adoption is key to Bitcoin reaching these heights, a trend that spot Bitcoin ETFs have accelerated. Previously, professional fund managers were hesitant to invest in Bitcoin; however, about 60% of funds now report having at least 1% of their assets in cryptocurrency.
Bitcoin ETFs facilitate easier investments, bringing liquidity, security, and legitimacy from the Securities and Exchange Commission (SEC). Since their introduction, more managers are allocating a portion of their funds toward cryptocurrency.
However, there's still a long way to go for Bitcoin to reach the ambitious targets set by Saylor and Wood. Although 60% of funds have 1% in crypto, a significant portion of the largest funds remain skeptical, with only 40% of funds larger than $500 billion having at least 1% in crypto, and 33% having less than 0.5%.
While the targets may seem overly optimistic, there is a general sentiment that Wall Street is increasingly adopting Bitcoin, suggesting that the trend of acceptance by professional managers is likely to continue. This could drive up both Bitcoin's value and the value of its ETFs, potentially allowing both to outperform the market for years to come.
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