Wall Street Expands Bitcoin Investments in Q2
Wall Street significantly increased its investment in bitcoin during the second quarter, as evidenced by recent disclosures to the Securities and Exchange Commission (SEC). This expansion includes not only investments in spot bitcoin exchange-traded funds (ETFs) but also in U.S. companies whose stock prices are closely linked to the fluctuations of the cryptocurrency market.
Brevan Howard Increases Holdings in Bitcoin Trust
Brevan Howard has almost doubled its investment in BlackRock’s iShares Bitcoin Trust (IBIT) during the second quarter, according to a recent securities filing. By the end of June, the macro-focused hedge fund owned approximately 37.9 million shares, rising from about 21.5 million in March. The value of this stake was estimated at over $2.6 billion based on IBIT’s closing price on June 28, positioning Brevan Howard as one of the largest institutional holders of IBIT, alongside Goldman Sachs, which increased its own investment to $3.3 billion in IBIT and Fidelity’s Wise Origin Bitcoin Trust (FBTC). Additionally, Goldman Sachs reported holding $489 million in the iShares Ethereum Trust (ETHA).
Goldman Sachs’ ETF Holdings Explained
It’s important to note that Goldman Sachs’ stake in these ETFs does not necessarily signify a direct speculative bet on bitcoin’s price by its trading desk; rather, it is likely a reflection of positions managed by Goldman Sachs Asset Management on behalf of its clients.
Brevan Howard’s Crypto Engagement
Brevan Howard, recognized for its macro trading strategies, has actively engaged in the cryptocurrency sector for some time. The firm operates a specialized division, BH Digital, dedicated to digital assets, managing billions in investments focused on blockchain technology, decentralized finance, and other related innovations.
Notable Investors in IBIT
Other significant investors in IBIT include Harvard University, which disclosed a $1.9 billion investment in the ETF, and the Mubadala Investment Company from Abu Dhabi, which maintains a $681 million stake. Among U.S. banks, Wells Fargo has nearly quadrupled its IBIT holdings to $160 million, up from $26 million in the previous quarter, while also holding a $200,000 stake in the Grayscale Bitcoin Fund (GBTC).
Cantor Fitzgerald and Jane Street Increase Crypto Holdings
Cantor Fitzgerald has raised its investments in IBIT to over $250 million, simultaneously increasing its stakes in crypto-related stocks like MicroStrategy (MSTR), Coinbase (COIN), and Robinhood (HOOD). Additionally, trading firm Jane Street has reported a $1.46 billion investment in IBIT, marking it as the largest single position in its portfolio after Tesla (TSLA) at $1.41 billion. Jane Street has also increased its investment in MSTR while trimming its holdings in FBTC.
Spot Bitcoin ETFs Provide Institutional Access
Spot bitcoin ETFs, such as IBIT, which was launched in January, provide investors with a way to participate in bitcoin’s market movements without holding the cryptocurrency directly. This structure allows traditional institutions to access the crypto market through established brokerage services and custodial arrangements.
Norway’s Sovereign Wealth Fund Expands Bitcoin Exposure
For international investors, acquiring bitcoin can be more straightforward through U.S.-listed companies that possess substantial amounts of BTC. Norway’s sovereign wealth fund is taking this approach, along with several European state-backed investors, by opting for equity stakes in companies associated with cryptocurrency rather than directly purchasing the digital asset.
Norges Bank Investment Management’s Bitcoin Holdings
Norges Bank Investment Management (NBIM), which oversees Norway’s $2 trillion pension fund, now indirectly holds 7,161 BTC, according to a recent report from K33 Research. This figure represents a 192% increase from last year’s total of 2,446 BTC and an 87% rise from the 3,821 BTC it held at the end of 2024. The most significant portion of this exposure—3,005 BTC—comes from shares in MicroStrategy, while the remainder is distributed among firms like Marathon Digital, Coinbase, Block, and Metaplanet. K33 also noted smaller contributions from GameStop (GME) and other lesser-known holdings.
Context of Norway’s Bitcoin Investment
Despite the notable increase in holdings, the overall exposure still remains minimal in the grand scheme. Norway’s fund has stakes in thousands of companies across various global markets, and its bitcoin-related investments constitute only a small fraction of its entire portfolio. At the current market price of approximately $117,502 per BTC, the fund’s 7,161 BTC is valued at around $841 million, which is less than 0.05% of the total $2 trillion portfolio. Although the significant growth over the past year may indicate a rising institutional comfort with cryptocurrencies, it does not signify a substantial strategic change at this point.
