Paul Tudor Jones’ investment firm increases stake in BlackRock's bitcoin ETF after year of selling
Paul Tudor Jones’ investment firm, Tudor Investment, increased its direct stake in BlackRock’s spot bitcoin ETF in the second quarter while cutting its reported call option position in the fund by 85%. The firm held 688,529 shares of the iShares Bitcoin Trust ETF (IBIT), …
Intelligence analysis by Llama
Tudor Investment increased its stake in BlackRock's bitcoin ETF in the second quarter, while cutting its call option position by 85%. The firm held 688,529 shares of the iShares Bitcoin Trust ETF (IBIT), valued at $22.9 million as of June 30.
Imagine you're a investor, and you think that a certain asset, like bitcoin, will go up in value because of inflation. You buy more of that asset, and that's what Tudor Investment did. They increased their stake in BlackRock's bitcoin ETF, which means they now own more of that asset. This is a big deal because it shows that Tudor Investment still believes in bitcoin as an inflation trade.
Analysis
Tudor Investment's Bitcoin Bet: A Closer Look at the Firm's Stake in BlackRock's ETF
Tudor Investment, the investment firm founded by billionaire Paul Tudor Jones, has made a significant move in the second quarter by increasing its direct stake in BlackRock's spot bitcoin ETF. The firm's reported call option position in the fund was cut by 85%, a move that suggests Tudor Investment remains bullish on the asset. The firm held 688,529 shares of the iShares Bitcoin Trust ETF (IBIT), valued at $22.9 million as of June 30.
This move is significant because Tudor Jones has repeatedly framed bitcoin as an inflation trade. He said in 2024 that “all roads lead to inflation” and disclosed that he was long bitcoin and gold, then called bitcoin the “best inflation hedge” in April this year, citing its fixed supply as an advantage over gold. The firm's stake in BlackRock's ETF is now worth around $24.5 million, a 6.5% increase from the end of March.
The firm's initial buildup in the ETF came as bitcoin rallied from around $60,000 to $92,000, while cuts then came into strength. In the second and third quarters of last year, BTC rallied to an all-time high of $124,000, while Tudor reduced its exposure. As bitcoin began to crash, Tudor's share count hit its low. Even after the latest purchases, the direct-share position remained 91.4% below its late-2024 peak and accounted for only a fraction of the $71.9 billion in the company's portfolio.
Tudor Investment's move is a significant development in the world of cryptocurrency, as it suggests that the firm remains committed to its inflation trade. The firm's stake in BlackRock's ETF is now worth around $24.5 million, a 6.5% increase from the end of March. This move is a clear indication that Tudor Investment remains bullish on the asset, and it will be interesting to see how the firm's position evolves in the coming months.
Key points
- Tudor Investment increased its direct stake in BlackRock's spot bitcoin ETF in the second quarter.
- The firm cut its reported call option position in the fund by 85%.
- Tudor Investment held 688,529 shares of the iShares Bitcoin Trust ETF (IBIT), valued at $22.9 million as of June 30.
- The firm's stake in BlackRock's ETF is now worth around $24.5 million, a 6.5% increase from the end of March.
If Tudor Investment's move is a sign of the firm's continued commitment to its inflation trade, it could lead to further increases in the price of bitcoin. This would be a positive development for the asset, as it would suggest that more investors are buying in and believing in its potential.
However, if Tudor Investment's move is seen as a sign of the firm's desperation to make a profit, it could lead to a decline in the price of bitcoin. This would be a negative development for the asset, as it would suggest that investors are losing confidence in its potential.
