Introduction

Welcome to another edition of the Empire Newsletter, your go-to source for the juiciest details about Bitcoin ETFs (and the occasional snarky commentary on financial happenings). With a fresh batch of 13Fs hot off the press, it's time to take stock of which big players are dipping their toes into the Bitcoin ETF pool and who’s doing a full-on cannonball. Grab your investment hats, folks; it's about to get interesting!

Major Investment Firms and Their Bitcoin ETF Holdings

Millennium Management's Disclosures

Millennium Management, a name that sounds like it's straight out of a sci-fi movie, has disclosed some jaw-dropping positions in Bitcoin ETFs. They hold a whopping 20 million shares of BlackRock’s Bitcoin ETF, worth over $844 million. They’ve also got fingers in other digital pies with 13 million shares of Fidelity’s ETF, three million Grayscale shares, 634,000 shares of ARK, and 1.1 million shares of Bitwise’s ETF. Now, before you get too excited and start imagining Millennium rolling around in digital gold, here’s the thing: this disclosure captures their holdings as of March 31. Given that they’re a multi-strategy hedge fund, they could have shorted, sold, traded, or done some financial hocus-pocus since then.

Basically, Millennium isn’t exactly the HODLer type. They’re the finance equivalent of playing Twister—always changing positions. However, it’s still noteworthy that they racked up nearly $2 billion in Bitcoin ETFs. Just don't start planning a parade in their honor yet. It's more like "watch this space" than "celebrate good times."

State of Wisconsin’s Investment Board

In a plot twist brought to you by America's Dairyland, the State of Wisconsin’s Investment Board (SWIB) made waves by buying 2.4 million shares of IBIT and over a million shares of GBTC. This board manages the Wisconsin Retirement System and State Investment Funds, which means they’re more like your steady grandma than your risk-taking cousin. They’re more likely to HODL than to flip these shares faster than pancakes at a fundraiser.

Crypto Twitter had a field day with this revelation, and rightfully so. If you want to see how traditional investment managers are navigating the Bitcoin ETF waters, Wisconsin’s playbook is a great place to start. They’re the type who'll buy a stock and tuck it in for a nice long nap in the portfolio.

Noteworthy Disclosures and Overall Market Interest

Hightower Advisors and Others

Outside of the heavy-hitters, a handful of intriguing disclosures surfaced. Take Hightower Advisors, for instance. This registered investment advisor revealed they hold $68 million in Bitcoin ETFs and manage over $100 billion in assets. On Monday, Bitwise highlighted that there were around 560 disclosures amounting to $3.5 billion in Bitcoin ETF shares as of the previous week. With the latest round of 13Fs, this figure could skyrocket, especially if you factor in Millennium’s outsized contributions.

To put this number-crunching into perspective, US Bitcoin ETFs hold nearly $59 billion in Bitcoin. The initial slew of 13Fs had some analysts skeptical about investor appetite. However, seeing nearly $5 billion in Bitcoin ETF holdings indicates there’s more interest than perhaps anticipated. Professional investors might own 7-10% of all circulating Bitcoin ETF shares, but for the most part, it’s a retail game—at least for now.

Summary of Bitcoin ETF Holdings

The grand takeaway here is that we’re on the cusp of what could be a significant shift in how Bitcoin ETFs are viewed and held. While the big players like Millennium have shown considerable interest, the steady hand of entities like Wisconsin’s Investment Board reveals a burgeoning acceptance among more conservative investors. Even states like New Hampshire are dipping potential toes into this financial pool. Their state rep, Keith Ammon, has hinted at exploring Bitcoin ETFs as a viable investment option.

The appetite is clear; the main course just might take some time to cook. With impressive and sometimes unexpected positions being revealed from institutional managers, 13F season may be over for now, but the institutional interest is only just beginning. So, keep your seat belts fastened and your popcorn ready. This ride in the Bitcoin ETF rollercoaster promises to be anything but boring.

Altcoin market performance

Welcome, crypto comrades! Ever wondered why your altcoins are behaving more erratically than a cat on a Roomba? Buckle up, because we’re diving deep into the heart of the altcoin market—where trends are wild, predictions are fickle, and everyone hopes to hit the jackpot without losing their shirt. Grab your popcorn, or whatever crypto folks munch on (ETH-flavored pretzels, maybe?), and let’s get started.

Previous altcoin seasons

The annals of crypto history are marked by wild altcoin seasons—those glorious periods when the lesser-known cryptos outshine even the mighty Bitcoin. Remember the bull market until 2018? Ether had its own little fiesta starting in January 2016, proving that even newbies can steal the spotlight. Six months later, the altcoin mania was in full swing and continued even after Bitcoin teased us with its $20,000 price record. Then came the 2020-2021 cycle: altcoin season made a grand entrance in May 2020. The market capitalization of the non-bitcoin crypto sector soared more than 70 times! Bitcoin was there too, nodding in approval with its mere 20x growth from the 2018 bottom to the 2021 top. Good times, right?

Current market trends

This time around, things are... well, a bit like waiting for a bus that might have been discontinued. Since the FTX crisis in late 2022, the closest we’ve come to altcoin season was in August 2023. But even then, it didn’t really say much because Ether was playing dead against Bitcoin. Right now, it feels like the crypto market minus the top 10 digital assets needs to grow a whole lot to even whisper "altcoin season". The market is teasing us, flipping us in and out of bullish and bearish moods faster than a crypto enthusiast checking their portfolio during a market crash.

Bullish vs. bearish perspectives

So, are we in for a treat or a trick next? Bulls will tell you that the lack of altcoin season simply means we're about to witness the mother of all altcoin seasons followed by Bitcoin smashing through new all-time highs. Bears, however, might argue that the most recent Bitcoin bull run was just a fluke—a blip caused by boomer investors who FOMO-ed into ETFs like it was the crypto equivalent of Black Friday shopping. Who's right? Only time will tell, my friends. Just remember, whether you're riding a bull or a bear, holding on tight is key!

Other notable crypto news

Neel Somani steps down

In the world of Ethereum Layer-2 startups, there's been quite the shakeup. Eclipse CEO Neel Somani has stepped down amidst accusations of sexual misconduct. Enter Vijay Chetty, the formerly chief growth officer, now stepping into Somani's shoes. It's a classic case of "out with the old, in with the new," and the crypto community is holding its collective breath to see how Chetty steers the ship. Cue dramatic music and a slow clap for the new captain.

CME Group's spot bitcoin trading

The CME Group is apparently feeling adventurous. According to the Financial Times, they're planning to offer spot Bitcoin trading to their clients. Imagine your uncle, who still uses a flip phone, calling you up to discuss his latest spot Bitcoin trade. It's a wild world we're living in, folks. Will this move shake up the industry? Only time—and possibly market volatility—will tell.

Tornado Cash developer's appeal

Meanwhile, in the realm of crypto legal battles, Tornado Cash developer Alexey Pertsev is making headlines with his appeal against a 64-month prison sentence. CoinDesk reports that Perrsev, sentenced for his allegedly shady dealings, isn't taking the ruling lying down. Who knew crypto could be this much of a courtroom drama? Pass the popcorn, please.

Coinbase's Australian product development

Down under, Coinbase is working on a product designed to cater to the potential demand for Australian self-managed pensions. Bloomberg spilled the beans on Coinbase's latest brainchild, which is sure to raise a few eyebrows and possibly some investment portfolios. Aussie investors can look forward to diversifying their retirement funds with a dash of crypto flair. Good on ya, Coinbase!

Canadian crypto king charged

Last but not least, the saga of the "Canadian Crypto King" has taken another twist. The 25-year-old has been slapped with charges of fraud and money laundering linked to an investment scam. It's like watching a high-stakes heist movie, except it's real life, and you're left wondering how anyone under 30 can amass such notoriety. Either way, it’s another day, another scandal in the crypto kingdom.

Department of Justice indictment

MEV bot attack details

The Department of Justice recently put its detective hat on and rolled out a juicy indictment involving MEV bot attacks. Remember when you thought bot attacks were just annoying? Well, think again. Two brothers have been named by the DOJ for a major strike on MEV bots that netted them a cool $25 million. Hats off for ambition, gents, but it seems like Big Brother was watching.

Planning and execution allegations

How did they pull it off, you ask? Allegedly, they masterminded the whole shebang in an online document they shared—Google Docs, no less. Ah, the classic combo of modern technology and sheer hubris. Nothing says criminal genius like open-source planning. Apparently, even the smartest crypto criminals turn to the same tools we use to plan family vacations. Sweet irony.

Google searches and evidence

To top it off, they reportedly Googled things like "how to launder crypto" and "does the United States extradite to [foreign country]". It's the digital equivalent of leaving your fingerprints all over the crime scene while wearing a name tag. It’s a timely reminder for us all to practice safe Googling habits. Who knew that your Google search history could one day become Exhibit A in an indictment?

Bitcoin ETFs: Who’s buying what and why?

Alright folks, it’s time to put on our detective hats and dive right into the tantalizing world of Bitcoin ETFs. The latest filing deadline for 13F forms just passed, and the big players in the financial arena are showing their hands. Millennium Management, the financial behemoth, disclosed a whopping position in BlackRock’s bitcoin ETF, holding around 20 million shares worth an eye-watering $844 million. And that's not all, they’ve also sprinkled their magic investment dust on Fidelity, Grayscale, ARK, and Bitwise. But before we get too excited, let’s remember that Millennium is not your typical hold-on-for-dear-life (HODL) investor. They might have already shorted or sold off their positions by now. It's like playing hot potato but with way more zeros on the end.

Speaking of HODLers, the Wisconsin Retirement System recently made waves on Crypto Twitter by scooping up 2.4 million shares of IBIT and over one million shares of GBTC. Now, this makes them more of a long-term investor in comparison. And this revelation got the crypto community buzzing harder than a caffeine-fueled conference. Hightower Advisors also threw their hat in the ring, revealing $68 million worth of bitcoin ETFs. And if you're thinking this is just a drop in the ocean, think again. In total, we’re talking about nearly $5 billion in bitcoin ETFs, which is a considerable chunk of the $59 billion held in US bitcoin ETFs.

But hold your horses; the professionals own just 7-10% of all bitcoin ETF shares in circulation, according to Bitwise’s Matt Hougan. The rest is still largely a retail game. That said, we might see a shift in this dynamic come the next quarter or even next year as more institutional investors find their footing. Like diligently cautious penguins, they're tiptoeing near the edge, ready to plunge in when they feel the water’s warm enough.

Interestingly, New Hampshire’s state representative Keith Ammon hinted at exploring bitcoin ETFs as an investment for his state. Who knew the “Live Free or Die” state would cozy up to cryptocurrencies? The appetite for bitcoin ETFs is undeniably there, and while patience is a virtue, the coming disclosures promise a feast for the eyes.

Arcane altcoin antics: Waiting for another season?

Shifting gears to the curious case of the missing altcoin season, let's dive into some intriguing data. Bitcoin has been on a roll, smashing past $66,000, but the altcoin universe seems stuck in orbit. While Ethereum Layer-2 solutions like Arbitrum and Base are duking it out for dominance, the wider altcoin market remains eerily stagnant. It’s almost like they're waiting for a cosmic signal to wake up. Historically, altcoin seasons have either preceded or coincided with bitcoin’s monumental highs. But this cycle has been more like a quiet library compared to a bustling alt-coin carnival.

Without a universally accepted definition, let’s define altcoin season as the period when the market cap growth of non-top-10 digital assets outpaces bitcoin, lasting for three months or more. During the 2016 rally, altcoins enjoyed their season early, ballooning in market cap right before Bitcoin hit its $20,000 record in 2018. The next cycle saw a more elusive altcoin season, though a substantial one did kick off in May 2020, thanks in part to the DeFi summer fever.

This time, however, the numbers aren't quite as enthusiastic. Since the FTX debacle’s crash in late 2022, the closest altcoins have come to a season was in August 2023, when their growth briefly eclipsed Ethereum’s, but that’s a pretty low bar considering Ether's underperformance. It’s like winning a potato sack race only to realize you were the only one racing.

So, is the glass half full or half empty? Bulls would argue we're on the cusp of a huge altcoin season, led by another spectacular bitcoin high. Bears, on the other hand, might say that the absence of a true altcoin rally hints at a faux bitcoin bull run, spurred largely by conservative investors dabbling in ETFs. Yet, if history tells us anything, it’s that predicting market rhythms can often feel like mystic fortune-telling - half art, half science.

The works: Industry murmurs and legal misadventures

Meanwhile, over in corporate dramas, Neel Somani, the now-former CEO of Eclipse, has stepped down amidst allegations of sexual misconduct. Taking his place is Vijay Chetty, who has a tough job ahead steering the Ethereum Layer-2 startup through rough seas. The CME Group is eyeing the introduction of spot bitcoin trading for its clientele, a move that could shake up the market dynamics. If you thought crypto was only about decentralized dreams, regulated giants like CME muscling in tell another story altogether.

And in the dark, twisted world of crypto crimes, Alexey Pertsev of Tornado Cash fame is appealing his 64-month prison sentence. Over on the Canadian front, a 25-year-old dubbed the "Crypto King" faces charges of fraud and money laundering. It's like a never-ending episode of “Crypto Law and Order,” where the plot twists keep getting juicier.

Finally, tech-savvy or not, everyone loves a good Google search fail. The Department of Justice provided a moment of comic relief, detailing how two brothers planned a $25 million MEV bot attack via a shared Google Doc. Adding to the chuckles, they googled how to launder crypto and avoid extradition. It’s as if they turned to Google for a DIY criminal mastermind kit. Lesson learned: Never leave a digital paper trail if you’re planning to be the next crypto Lex Luthor. Safe searching, everyone!