Paul Tudor Jones Makes Waves: $160 Million Investment in BlackRock Bitcoin ETF Revealed!

Big Investment in Bitcoin ETF

Paul Tudor Jones, a renowned billionaire hedge fund investor, has recently increased his stake in BlackRock’s iShares Bitcoin Trust ETF (IBIT) to an impressive $160 million. This move marks a significant five-fold increase in his ETF holdings last quarter, showcasing his bullish stance on Bitcoin exchange-traded funds.

Hedge Funds Embrace the Basis Trade

The surge in hedge fund interest is part of a broader strategy known as the basis trade, which has gained traction as the price of Bitcoin futures outpaces that of ETFs. According to Bloomberg data, Tudor Investment is now among the top 10 IBIT holders. This strategy is becoming increasingly popular, especially as the recent market dynamics have created opportunities for significant gains.

Market Dynamics and Investment Trends

The difference in asset pricing reached as high as 17% last week, a level not seen since the launch of Bitcoin ETFs in January. Eric Balchunas, an ETF analyst, characterized Jones’ investment as a net positive for Bitcoin, stating it reflects the growing confidence in the cryptocurrency market.

Bitcoin Reaches New Heights

This filing comes as Bitcoin has surged to a new all-time high above $92,000. The recent victory of Donald Trump in the US presidential elections has further bolstered market optimism, with many anticipating favorable crypto regulations under his administration.

Long-Term Bitcoin Advocate

Jones has been a long-time advocate for Bitcoin, previously identifying it as a suitable hedge against inflation alongside gold. He has recommended that investors allocate 5% of their portfolios to Bitcoin to diversify their investments. Despite his massive holdings, it’s noteworthy that his IBIT investment constitutes only 1.7% of his fund’s $9 billion in assets under management.

Wall Street’s Bitcoin ETF Landscape

The 13F filings this month reveal that Millennium, a major Wall Street hedge fund, remains the largest Bitcoin ETF holder in the US, owning $1.9 billion in Bitcoin ETFs. Other significant players include Susquehanna, Horizon Kinetics, and Jane Street Group, indicating a robust appetite for Bitcoin investments among hedge funds. Since their inception in January, Bitcoin ETFs in the US have attracted nearly $28 billion in investments.

Article by Osato Avan-Nomayo, our DeFi correspondent.