Several billionaire hedge fund managers in the third quarter added to their positions in the iShares Bitcoin Trust (NASDAQ: IBIT), an exchange-traded fund (ETF) issued by BlackRock that tracks the price of Bitcoin (CRYPTO: BTC). Details are provided below:
-
Israel Englander of Millennium Management bought 12.6 million shares of the iShares Bitcoin Trust, increasing his stake by 116%. The BlackRock fund is now his eighth largest holding excluding options.
-
Paul Tudor Jones of Tudor Investment bought 3.5 million shares of the iShares Bitcoin Trust, increasing his stake by 409%. The BlackRock fund is now his third largest holding excluding options.
-
Steven Schonfeld of Schonfeld Strategic Advisors bought 1.2 million shares of the iShares Bitcoin Trust, increasing his stake by 30%. The BlackRock fund is now his fourth largest holding excluding options.
Importantly, those trades took place in the third quarter, which ended several months ago. The fund managers may have added or sold shares since then, but we won’t know what action they took in the fourth quarter until Forms 13F are filed later this month.
However, the trades above still suggest institutional investors are increasingly interested in Bitcoin. Certain Wall Street experts think that trend will ultimately make the cryptocurrency much more valuable.
Bitcoin more than doubled in the past year amid a flurry positive developments, including the approval of spot Bitcoin ETFs like the iShares Bitcoin Trust, and expectations that President Donald Trump will usher in positive regulatory changes. Bitcoin currently trades at $97,000, but the Wall Street experts below think that number is headed higher:
-
Gautam Chhugani at Bernstein thinks Bitcoin could reach $1 million by 2033. That implies about 930% upside from its current price.
-
Cathie Wood at Ark Invest thinks Bitcoin could hit $3.8 million by 2030. That implies about 3,815% upside from its current price.
-
Michael Saylor, executive chairman at MicroStrategy, estimates Bitcoin’s price will land between $3 trillion and $49 trillion by 2045. That implies 2,990% to 50,415% upside from its current price.
Importantly, the price targets above imply equivalent upside in the iShares Bitcoin Trust. Of course, investors should always treat forecasts with skepticism, especially when they promise enormous gains. But there are compelling reasons to believe Bitcoin will be more valuable in the future.
Last year, the Securities and Exchange Commission (SEC) approved spot Bitcoin ETFs in what many analysts called a turning point for the cryptocurrency industry. Those funds let investors add Bitcoin exposure to their existing brokerage accounts, while eliminating the complexity and high fees associated with cryptocurrency exchanges.
