Hedge Fund Giants Go Big on BlackRock’s Bitcoin ETF as $200K Target Fuels Buzz

Big money is making bold moves. Hedge fund titans are stacking up Bitcoin exposure like never before, betting big on BlackRock’s iShares Bitcoin Trust—and the stakes are climbing fast.

Israel Englander, David Shaw, and Paul Tudor Jones aren’t just dabbling—they’re making Bitcoin one of their biggest plays. Meanwhile, Wall Street forecasts are cranking up the volume with eye-popping predictions: Bitcoin at $200,000 by the end of 2025. Is this real momentum, or just another hype cycle?

Hedge Fund Billionaires Are Loading Up on Bitcoin Exposure

This isn’t a quiet accumulation. It’s a headline-making reallocation of serious capital. Israel Englander’s Millennium Management now holds 6.3 million shares of the iShares Bitcoin Trust (IBIT), bumping it up to the third-largest holding in the fund. That’s no casual endorsement.

David Shaw’s D.E. Shaw took it even further. The quant legend boosted his position by a staggering 345%, buying 7.4 million shares. And Paul Tudor Jones? He now holds 3.6 million shares—making BlackRock’s Bitcoin ETF the top dog in his portfolio.

That’s not typical behavior.

These moves tell a clear story: institutional interest in Bitcoin is heating up, and fast.

Wall Street Eyes $200K Bitcoin: Why the Forecasts Are Turning Heads

AllianceBernstein’s Gautam Chhugani and Standard Chartered’s Geoff Kendrick have landed on the same number—$200,000. Not in a decade. Not eventually. By the end of next year.

That’s more than double the current price, which hovers around $95,000.

So, what’s the math?

Two things stand out in their models:

• A shift from gold to Bitcoin, as uncertainty fuels a new kind of inflation hedge.

• A flood of institutional buying, now supercharged by SEC-approved spot Bitcoin ETFs.

There’s also the Trump factor. His tariff policies, revived on the campaign trail and echoed in trade proposals, are expected to lift inflation. That makes alternative assets—especially those with limited supply—more appealing.

And Bitcoin? It’s capped at 21 million coins. No printing presses here.

Spot Bitcoin ETFs Are Changing the Game for Traditional Investors

Buying Bitcoin used to be a pain. Separate accounts. Sketchy platforms. Nasty fees. Spot ETFs like BlackRock’s IBIT have changed that overnight.

They’re doing for Bitcoin what SPY did for the S&P 500.

The iShares Bitcoin Trust lets investors gain exposure through brokerage accounts they already use. And the cost? It’s low. Just 0.25% annually in fees.

Let’s put that in context:

Institutional Adoption Is Moving Fast—Faster Than Any ETF Before

Matt Hougan, CIO at Bitwise, isn’t exaggerating when he says this is the fastest institutional adoption of any ETF in U.S. history. Since SEC approval in January 2024, the iShares Bitcoin Trust has surged in popularity among asset managers.

Here’s what stands out:

• Forms 13F filings show a near doubling of institutional holders in just two quarters.

• IBIT is now a top-25 holding in D.E. Shaw’s portfolio and the largest in Tudor Investment Corp.

• Trading volumes are trending higher, despite broader market pullbacks.

This isn’t a niche asset anymore. It’s prime-time Wall Street.

Even so, the Bitcoin ride hasn’t smoothed out.

Volatility Is Still the Name of the Game

Let’s be real. Bitcoin’s track record for wild swings hasn’t changed. Since May 2023, the price surged 240%. By comparison, gold climbed 45%, and the S&P 500 returned 40%.

Impressive? Absolutely. But risky? No doubt.

Bitcoin fell more than 25% from peak to trough—twice—in the past 24 months. That kind of whiplash isn’t for the faint of heart.

Gold, meanwhile, never dropped more than 4% during the same period. And the S&P 500’s biggest dip was under 19%.

So, if you’re jumping in now, expect turbulence.

But for those who can stomach the ride, the iShares Bitcoin Trust offers a more manageable way to hold on.