Wall Street Whale Dives into Bitcoin: Susquehanna Snags $1.2 Billion Position

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As an experienced financial analyst, I’m closely monitoring the latest developments in the cryptocurrency market, particularly the moves made by institutional investors like Susquehanna International Group. The firm’s recent significant increase in Bitcoin ETF holdings is a noteworthy development that I believe signifies a growing institutional interest and confidence in the digital asset class.

Expert: The prominent financial institution, Susquehanna International Group based on Wall Street, renowned for its substantial trading activity in various financial markets, has markededly upped its investment in Bitcoin (BTC), accumulating a considerable $1.2 billion stake in the first quarter of 2024.

Based on a recent SEC filing, Susquehanna International owns over 17 million shares in the Grayscale Bitcoin Trust (GBTC), worth around $1.09 billion as of March 31. Additionally, they hold nearly 1.35 million shares of Fidelity’s spot Bitcoin ETF (FBTC), valued at approximately $83.74 million.

As a crypto investor, I’m excited to share that my firm, Susquehanna, has boosted its investment in the ProShares Bitcoin Strategy ETF (BITO). This ETF provides us with access to Bitcoin futures contracts. Our holdings in BITO have grown by an impressive 57.59% since February, amounting to 7,907,827 shares with a market value of approximately $255.42 million.

As a crypto investor, I’m excited to share that the firm’s Bitcoin ETF holdings go beyond just the core investments. We have stakes in several prominent Bitcoin funds managed by industry leaders such as BlackRock, ARK Invest, Bitwise, Valkyrie, Invesco Galaxy, VanEck, and WisdomTree. By diversifying our portfolio in this way, we aim to maximize potential returns while minimizing risks.

In a recent portfolio disclosure, Susquehanna International Group, LLP reveals that they manage more than a billion dollars’ worth of Bitcoin Exchange-Traded Funds (ETFs).

— Phoenix » PhoenixNews.io (@PhoenixTrades_) May 7, 2024

Although it’s a sizeable amount, Susquehanna’s investment in Bitcoin ETFs only makes up a small portion of its total assets, worth over $575.8 billion. The $1.2 billion dedicated to Bitcoin ETFs equates to approximately 0.22% of their holdings, indicating a careful yet noticeable exploration into the digital asset market.

At present, Bitcoin experiences a price uptick after experiencing a notable decline that caused its value to dip under the $57,000 threshold, only to bounce back and currently trade around $62,200.

Arthur Hayes, the creator of renowned cryptocurrency derivatives exchange BitMEX, has lately expressed his perspective on the current instability in the digital currency market. According to him, we have reached a temporary low point, and the markets may experience confined price movements in the near future.

As an analyst, I would explain that in a blog post titled “Mayday” on BitMEX, I identified several factors contributing to the cryptocurrency market’s volatility. The conclusion of the US tax season was one factor, as it often results in increased trading activity. Another concern was potential Federal Reserve policy changes, which can have significant impacts on financial markets. Bitcoin’s recent halving event also played a role, as this process reduces the inflationary pressure on the cryptocurrency. Lastly, I noted that stagnant growth in assets under management for US spot Bitcoin ETFs was another factor influencing market fluctuations.

According to Hayes’ recommendation, investors should consider getting back into the market as the gradual injection of billions of dollars in liquidity each month is expected to mitigate further price drops. Although he doesn’t foresee an immediate reaction from crypto prices to the recent US monetary announcements’ inflationary effects, he predicts that prices will find their bottom, experience volatility, and eventually start a steady climb upwards.

According to him, his recent bout of vomiting intensely has given him the chance to invest in Solana and “shiba inu-like coins” for short-term momentum trading. In the long run, he plans to identify other cryptocurrencies that he believes are underpriced for his long-term investment position.

As a researcher observing current financial trends, I’ve found that once I’ve amassed a certain amount this month, my plan is to set it aside, let it be, and trust the market to value the inflationary implications of the latest US monetary policy decisions.

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2024-05-09 03:58