Susquehanna International Group, a major player in asset management with a global reach in handling various financial products, has recently made a substantial investment in Bitcoin through exchange-traded funds (ETFs). According to a disclosure to the Securities and Exchange Commission (SEC) on May 7, Susquehanna held around $1.2 billion in spot ETFs during the first quarter of 2024.
The scale and diversity of Susquehanna’s investment are noteworthy. The firm now owns 17,271,326 shares in the Grayscale Bitcoin Trust (GBTC), valued at approximately $1.09 billion as of March 31, 2024. This significant investment in GBTC highlights Susquehanna’s preference for the fund due to its high liquidity.
In addition to GBTC, Susquehanna has diversified its holdings with investments in other Bitcoin ETFs. This includes 1,349,414 shares of Fidelity’s spot Bitcoin ETF (FBTC) worth around $83.74 million, and a substantial stake in the ProShares Bitcoin Strategy ETF (BITO), which offers exposure to BTC futures contracts. As of March 31, 2024, Susquehanna owned 7,907,827 shares of BITO valued at approximately $255.42 million, representing a significant increase from previous filings.
Susquehanna’s Bitcoin ETF portfolio also includes investments in other prominent funds such as the BlackRock ETF, ARK21 ETF, Bitwise ETF, Valkyrie ETF, Invesco Galaxy ETF, VanEck ETF Trust, and WisdomTree ETF. This strategic selection of funds demonstrates the firm’s comprehensive approach to capitalizing on different aspects of Bitcoin’s investment potential.
Julian Fahrer, CEO and co-founder of Apollo, praised Susquehanna’s significant Bitcoin ETF holdings, calling them the “biggest Bitcoin ETF whale yet.” Despite these substantial investments, Bitcoin ETFs only constitute about 0.22% of Susquehanna’s total portfolio, which exceeds $575.8 billion. This cautious yet significant entry into the digital asset space reflects the firm’s strategic approach.
Susquehanna’s increased institutional investment in Bitcoin ETFs is expected to boost Bitcoin’s credibility and stability as a financial asset. The firm’s diverse investment strategy also includes indirect exposure to Bitcoin through holdings in MicroStrategy stock, which has a significant Bitcoin reserve on its balance sheet.
As of the latest update, Bitcoin was trading at $62,352. The market implications of Susquehanna’s investments are far-reaching, with the rise in institutional interest likely to impact Bitcoin’s overall market dynamics positively. This move underscores the growing optimism and institutional confidence in cryptocurrency investments.