Hedge Funds Pile into Bitcoin ETFs: Institutional Demand Surges

Institutional investors are quietly increasing their exposure to Bitcoin through exchange-traded funds (ETFs) like BlackRock’s IBIT and Fidelity’s FBTC, marking a significant shift in market dynamics. As major hedge funds, such as Millennium Management, Citadel, and Bridgewater Associates, invest 1–3% of their assets under management (AUM) into these ETFs, the demand for Bitcoin is accelerating, creating potential supply constraints that could impact prices. This surge in institutional investment is driven by their increasing confidence in Bitcoin’s long-term value as a macro asset hedge against inflation and currency devaluation.