Over Half of US Hedge Funds Invest in Bitcoin as BTC Surges Past Stocks in 2024

Bitcoin's performance in 2024 has caught the attention of major US hedge funds, with over half of the top 25 now owning Bitcoin ETFs. This trend has been particularly evident in the first quarter of 2024, with prominent names like Millennium Management allocating 2.5% of its total assets under management to Bitcoin, holding a staggering 27,263 BTC worth $1.69 billion. Schonfeld Strategic Advisors and Point72 Asset Management are also notable investors in Bitcoin ETFs. This growing interest in Bitcoin coincides with a rise in cash reserves across US companies, indicating a growing confidence in the cryptocurrency as a viable asset for diversification and hedging against traditional market risks.

While Bitcoin's performance has outstripped major stocks and indexes, including the S&P 500, Dow Jones, Apple, and Tesla, Nvidia has outperformed Bitcoin in 2024, driven by the artificial intelligence boom.

Experts like Peter Brandt anticipate Bitcoin's relevance as a hedging asset growing, particularly against gold. He predicts Bitcoin's market capitalization could rise 230% against gold after 2025. The ARK Invest annual research report concluded that institutional portfolios should have allocated 19.4% to Bitcoin in 2023 for maximized risk-adjusted returns.