Hedge Funds Shed Bitcoin ETF Stakes While Goldman Sachs Ramps Up

Hedge Funds Reduce Bitcoin ETF Exposure in Q4

Did hedge funds lose their crypto zeal in the fourth quarter? CX Institutional certainly did, trimming its stake in the ProShares Bitcoin Strategy ETF (BITO) by nearly 10%. With the fund now holding just over 14,000 shares, its exposure to the ETF stands at a mere $291,000.

Goldman Sachs Doubles Down

On the flip side, Goldman Sachs went all-in on BITO, boosting its position by an eye-popping 8,714%. The investment bank now holds over 8.8 million shares worth a whopping $102 million.

Renaissance and Flow Traders Jump In

Other hedge funds couldn't resist the allure of Bitcoin. Renaissance Technologies entered the game with a $5 million stake, while Flow Traders U.S. chipped in $10.5 million.

Parallax Volatility Expands Its Portfolio

Parallax Volatility Advisers took a more measured approach, increasing its position by a substantial 335.6%. The fund now owns over 236,000 shares valued at $2.7 million.

Point72 Joins the Bitcoin Bandwagon

Point72 Asset Management also dipped its toe in the crypto waters, purchasing a stake worth around $5 million.

BITO's Price Performance: A Rollercoaster Ride

Despite the bullish sentiment from some hedge funds, BITO's stock price has been on a rollercoaster ride. Opening at $29.16 on Monday, it currently hovers around $25.12 on its 50-day moving average and $20.31 on its 200-day moving average. The ETF's 52-week range has been wide, with a low of $12.79 and a high of $33.79.

ProShares Bitcoin Strategy ETF: A Brief Overview

BITO, an exchange-traded fund, invests primarily in long Bitcoin futures and short U.S. dollar currency. Actively managed, the fund tracks a portfolio of front-month CME Bitcoin futures. Launched in October 2021, BITO is under the stewardship of ProShares.