Bitcoin ETFs

YEREVAN ( — Bracebridge Capital has solidified its status as a major player in the cryptocurrency market by channeling substantial investments into Bitcoin ETFs.

Notably, the firm now holds $262 million in ARK 21Shares Bitcoin ETF (ARKB) and $86 million in iShares Bitcoin Trust (IBIT), making it the largest investor in these funds. Additionally, Bracebridge Capital’s stake of $22.67 million in Grayscale Bitcoin Trust (GBTC) ranks it as the fifth largest holder, demonstrating its growing confidence in the cryptocurrency sector.

"Bracebridge Capital's Record Bitcoin ETF Investment - Source: Eric Balchunas on Twitter"
Bracebridge Capital’s Record Bitcoin ETF Investment. Source: Eric Balchunas

Bitcoin ETF Inflows Are Slowing Down, However

Bracebridge Capital’s investment in Bitcoin exchange-traded funds comes at a time when the market is contemplating the cryptocurrency’s role as a safe-haven asset akin to Gold. These sentiments have improved primarily due to Bitcoin’s declining annualized realized volatility over the years—from 200% in the early 2010s to around 45% in May 2024.

Bitcoin realized volatility
Bitcoin realized volatility. Source: Glassnode

The period of declining volatility has typically preceded broader bullish moves in the Bitcoin market, according to Fidelity Investment’s latest report, which may serve as a buying signal for investors in the future, primarily after the launch of mainstream investment vehicles like exchange-traded funds.


“As price rises out of the bear market, there is a rise in addresses in profit as seller energy reaches its high. Moreover, the number of days below an all-time high peaks just as volatility reaches its low. We are calling this the price appreciation phase. All the while, price and the percentage of addresses in profit steadily rises in a low volatility environment until a new all-time high is reached.

The Ripple Effects of Bracebridge’s Investment

The increasing traction of Bitcoin ETFs among institutional investors is evident, with Eric Balchunas pointing out the significant adoption rates compared to other financial products.

As these ETFs continue to draw more institutional money, they are poised to play a pivotal role in the integration and maturation of cryptocurrencies into traditional financial systems. Such strategic investments are expected to drive future market trends and foster a stable environment for digital currencies.

Record-Breaking Bitcoin ETF Adoption Rates - Source: Eric Balchunas
Record-Breaking Bitcoin ETF Adoption Rates. Source: Eric Balchunas

The anticipated outcome is a financial ecosystem where digital assets are as standard and regulated as traditional securities. As Bracebridge Capital and others pave the way, we can expect a significant transformation in how investment portfolios are diversified, making digital currencies a norm in financial planning.

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