The latest SEC data reveals that Millennium Management, owned by Israel Englander, bought Bitcoin and ETH ETFs. The exchange happened on 14th Feb.
However, concerns grow, as the value of these investments has sharply reduced.
The Course of Events
The hedge fund worth $75 billion was blended to the Grayscale Bitcoin Mini Trust ETF and the Grayscale’s ETH Trust ETF to some extent too. On Wednesday, both ETFs lost a great share of their value.
Millennium Management’s 768,911 BTC ETF units have dropped their values significantly. The value has come down to $37.38 for each unit from $43.11. Consequently, the net value dropped from $33.1 million to around $28.7 million. The net loss percentage is 13.25%.
ETH faced the worst. The value of each unit fell from $25.74 to approximately $15. Guess the effect of each of 1,702,038 units losing their unit values simultaneously.
The Real Impact of the Drop
Millennium is also facing broader challenges when the news of this value drop came in. Millennium allegedly lost around $900 million this year. The market volatility has affected the index rebalancing idea.
However, Millennium is still planned to expand, despite the crucial setbacks. By the end of February, the firm’s net valuation had dropped 1% already.
In 1989, Englander founded Millennium. The entry amount was just $35. Meanwhile, the company came up with several investment strategies. That includes-
- Relative Value
- Equity Arbitrage
- Fixed Income
- Quantitative Approaches
Meanwhile, Englander entered the realm as a floor broker on the AmEx. Since then, 100% of Millennium’s ownership has been with Englander. Hence, the strong threshold growth that we see today!
