Millennium Management reported a $22.7 million loss on its Bitcoin and Ethereum ETFs purchased in Q4, according to a February 14 filing. The Grayscale Bitcoin Mini Trust fell by 13.25%, while the Grayscale Ethereum Mini Trust suffered a decline of 41.86%. These losses are part of broader issues for the firm, which has faced $900 million in total losses this year due to market volatility.
Millennium Management, a hedge fund valued at $75 billion, faced significant losses on its investments in Bitcoin and Ethereum exchange-traded funds (ETFs) purchased in the fourth quarter. According to a 13F-HR filing with the U.S. Securities and Exchange Commission, the firm has endured a total loss of approximately $22.7 million amid a broader decline in crypto values.
The hedge fund acquired 768,911 units of the Grayscale Bitcoin Mini Trust ETF, witnessing a decrease in price from $43.11 to $37.38 per unit. Consequently, the value dropped from $33.1 million to $28.7 million, translating to a loss of 13.25% or about $4.39 million.
Similarly, the investment in the Grayscale Ethereum Mini Trust ETF performed even worse, as 1,702,038 units fell from $25.74 to $14.96 per unit. This reduction led to a total value decline from $43.8 million to $25.5 million, resulting in a steep 41.86% decrease amounting to roughly $18.34 million.
Overall, these losses for Millennium come amidst a challenging financial landscape, which has reportedly cost the firm around $900 million this year due to market volatility affecting its index rebalancing strategy. Despite these trials, the firm noted a decline of less than 1% through February.
Founded by Israel Englander in 1989 with initial capital of $35 million, Millennium Management utilises various investment strategies including relative value, equity arbitrage, fixed income, and quantitative methods. Englander, who started his career as a floor broker and trader, maintains complete ownership of the firm since its establishment.
