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Avenir Investment Group’s Bold Move into Cryptocurrencies
Avenir Investment Group, a Hong Kong-based investment firm, has significantly boosted its cryptocurrency holdings by acquiring an additional 3.4 million shares of BlackRock’s iShares Bitcoin Trust ETF (IBIT) during the first quarter of 2025. This strategic acquisition brings Avenir’s total investment in IBIT to approximately US$691 million (AU$1.08 billion), with digital assets now accounting for around 90% of their portfolio, alongside minor positions in traditional tech stocks and other cryptocurrencies.
Increased Bitcoin Exposure
With this latest purchase, Avenir now owns 14.7 million shares of IBIT. In addition to their major stake in Bitcoin, they maintain investments in the Fidelity Wise Origin Bitcoin Fund (FBTC) valued at US$4.2 million (AU$6.6 million) and a small exposure to a 2X Ether ETF known as Volatility SHS TR. The overwhelming concentration in Bitcoin illustrates the firm’s commitment to digital assets, reinforcing their position as a prominent institutional player in the cryptocurrency domain.
In their earlier communications, Avenir emphasised their evolving role within the digital asset market, noting that their recent activities underline confidence in the future of cryptocurrencies, marking a crucial evolution in their investment strategy.
SEC’s Review of IBIT Adjustments
Recently, the U.S. Securities and Exchange Commission (SEC) has initiated a formal review to assess Nasdaq’s proposal for in-kind creations and redemptions of shares in the iShares Bitcoin Trust ETF. This potential shift from a cash-only mechanism to a structure akin to traditional commodity ETFs could enhance operational efficiency by enabling direct Bitcoin transfers during share creation and redemption processes. This change could also minimise tracking errors and lower transaction costs for market participants.
Market Response and Impact
Despite a troubling day on May 15, when US$295 million was withdrawn from US spot Bitcoin ETFs, the overall sector remains resilient. These funds currently hold 1.18 million Bitcoin, representing 5.6% of the total Bitcoin supply. The iShares Bitcoin Trust ETF maintains its status as the largest Bitcoin ETF globally, with Avenir’s latest acquisition contributing to its vast reserve of about 627,986 Bitcoins—approximately 2.99% of the capped supply of 21 million Bitcoins.
Conclusion
Avenir Investment Group’s bold manoeuvres in the cryptocurrency market not only reflect their strategic positioning but also highlight the growing confidence among institutional players in digital assets. With significant investments in Bitcoin and ongoing developments concerning regulatory adjustments, Avenir is well-placed to navigate the evolving landscape of cryptocurrency investment, playing a pivotal role in the future of this dynamic sector.
