More than half of the top hedge funds in the United States have disclosed investments in newly launched Bitcoin exchange-traded funds (ETFs) over the past year.
This interest has significantly increased, especially considering the continued outperformance of BTC/USD compared to major stocks.
According to data from the first quarter of 2023, River 2024 Investment Corporation, one of the 25 largest hedge funds in the US, has allocated funds to the Bitcoin ETF managed by Millennium Management, leading with 27,263 BTC valued at $169 million, accounting for 67.7% of its total assets of $250 million. It is noteworthy that companies such as Bridgewater Associates and AQR Capital Management are absent.
Meanwhile, US companies with cash reserves are expected to reach a peak of $2.024 trillion in the first quarter of 2024 and begin allocating a portion of their funds to Bitcoin or Bitcoin ETFs.
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This trend reflects increasing confidence in Bitcoin as a diversification tool and as a hedge against market volatility.
In the first half of 2024, Bitcoin’s return rate reached as high as 2024%, surpassing the gains of stocks such as Apple and Tesla, highlighting its appeal on Wall Street.
Analysts predict that Bitcoin’s role as a hedge against traditional assets like gold will continue to strengthen, with its market value relative to gold expected to significantly increase by 2025.
