Hedge funds, including Tudor Investment Corp and Hunting Hill Capital, significantly increased their exposure to US bitcoin exchange-traded funds (ETFs) in Q4 2024, capitalising on the cryptocurrency’s 47% surge, according to newly released regulatory filings.
Tudor, the systematic hedge fund led by billionaire Paul Tudor Jones, more than doubled its stake in the iShares Bitcoin Trust ETF, the largest of the bitcoin ETFs with over $55bn in assets. Tudor’s holdings grew to eight million shares by year-end, valued at $426.9m — up from 4.4 million shares worth $159.9m at the end of Q3. The firm did not immediately comment on the move.
Hunting Hill Capital, meanwhile, another hedge fund active in digital assets, re-entered the bitcoin ETF market in Q4 after having no exposure in the prior quarter. By 31 December, its positions were valued at approximately $131m.
Institutional capital has also continued to flow into bitcoin ETFs, with Abu Dhabi’s sovereign wealth fund, Mubadala Investment, disclosing its first investment in the sector. Mubadala acquired 8.2 million shares of IBIT, valued at $436.9m, while other institutional investors, including financial advisory firms including Cetera Advisors and NewEdge Advisers, also increased their exposure to various bitcoin ETFs offered by Fidelity, ARK Investments, and Invesco.
Cresset Asset Management, meanwhile, took a more strategic approach, favouring ETFs with lower fees and implementing options strategies to hedge against downside risk.
