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Report: $48 Billion Hedge Fund Millennium Management Had GBTC Exposure

Millennium Management, one of the world’s largest hedge funds, reportedly had exposure to Grayscale Bitcoin Trust as NAV fell steeply.

Author:
Dylan LeClair[1]
Publish date:

Millennium Management, one of the world’s largest hedge funds, reportedly had exposure to Grayscale Bitcoin Trust as NAV fell steeply.

Millennium Management, one of the world's largest[2] hedge funds with $48 billion in assets under management, is reported to have had exposure to Grayscale Bitcoin Trust (GBTC) as net asset value (NAV) fell steeply in March, according to TheStreet Crypto[3].

Shares of GBTC have spent a majority of the last six weeks trading negative to NAV[4], presenting a challenge to investors and funds that implemented the infamous arbitrage trade[5].

It is notable that GBTC is still trading at a steep discount to NAV, despite attempts[6] from Grayscale to get the shares back to trading at a premium. Because GBTC is structured as a trust, investors who redeemed shares from Grayscale have to abide by a six-month lockup period before being able to trade their shares on the secondary market, potentially locking Millennium and other funds into losses as the premium turned negative in February. 

Year-to-date discount/premium to NAV for GBTC. Source.
Year-to-date discount/premium to NAV for GBTC. Source[7].

"The arbitrage trade is just so broken," a source of the Millennium news told TheStreet.

While a Millennium spokesperson declined to comment about its exposure to GBTC, per TheStreet, it is significant that such a large firm reportedly had and potentially still has exposure to the bitcoin market. And it is a positive sign for the asset as it continues to become legitimized in the eyes of Wall Street institutions and investors.

With multiple bitcoin exchange-traded

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