May 15, 2024 - Economy

πŸ“„ Bitcoin in TradFi paperwork

Illustration of a crypto coin glowing atop a pile of receipts

Illustration: Natalie Peeples/Axios

Bitcoin stands to get a boost from TradFi paperwork.

Between the lines: Filings are rolling in from institutional investors that detail their recent holdings, and they're unveiling buyers of the January-launched spot bitcoin ETFs.

  • They included big hedge funds like Renaissance Technologies and random ones, registered investment advisers and even Wisconsin's pension fund.
  • The institutional buy-in of bitcoin is so notable, at least one meme-stock trader seems to be associating 🍊 with Wall Street. (Scroll for moreπŸ‘‡)

Flashback: Tracking these filings, known as 13Fs, is sport β€” people like to try to borrow investment wisdom from Pershing Square's Bill Ackman, Citadel's Ken Griffin or Berkshire Hathaway's Warren Buffett.

  • πŸ“Έ Try, because 13Fs are filed quarterly, and are an incomplete, backward-looking snapshot of holdings over a period of time.
  • Hedge funds, mutual funds, trusts, pension funds, insurance companies and RIAs file these on a lag.

Zoom in: Some folks made a lot of hay about big banks holding bitcoin ETFs and were gently chided for mistaking market makers' holdings for bets, but the natives weren't wrong to be enthused.

πŸ’­ Our thought bubble: If traditional finance behaves predictably, as it does, the next quarter's 13F filings will very likely include new names, inspired by this quarter's buyers.

Worthy of your time: Bitwise's Matt Hougan is bullish about 13Fs for a different, but equally compelling reason specific to adviser behavior.


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