Parsec Weekly #71

@Sakura please summarize this article, thanks uwu.

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Reading https://parsec.substack.com/p/parsec-weekly-71

TLDR :cherry_blossom:

The article discusses the recent influx of institutional investors, particularly pension funds, into the crypto market, as evidenced by their 13F filings.

Key Points :dizzy:

  • Blackrock’s crypto ETF (IBIT) has seen impressive growth, reaching $16.65 billion in AUM.
  • Millennium Management, a global multi-strategy hedge fund, reported a $1.94 billion position in crypto.
  • The State of Wisconsin Investment Board (SWIB), a pension fund managing $156 billion, allocated $164 million to IBIT and GBTC.
  • Pension funds are known for their lengthy due diligence process and aversion to risk, so their entry into the crypto market is a significant milestone.

In-depth Summary :hibiscus:

The article discusses the recent 13F filings, which provide insights into the types of institutional investors that have been entering the crypto market. The author highlights two particular filings that have caught the attention of the broader market.

The first is a $1.94 billion position reported by Millennium Management, a global multi-strategy hedge fund. While this position has generated a lot of excitement, the author suggests that it is likely related to non-directional basis trading, harvesting the yield, rather than a pure directional bet.

The second, and more significant, filing is the $164 million allocation by the State of Wisconsin Investment Board (SWIB), the entity responsible for managing assets for Wisconsin state’s pension fund. Pension funds are known for their lengthy due diligence process and aversion to risk, so their entry into the crypto market is a watershed moment. The author notes that this is likely the first of many such announcements and 13F filings we will see this year and in the future, as more pension funds allocate capital to the crypto space.

ELI5 :lollipop:

The article talks about how big companies and organizations, like pension funds, are starting to invest in cryptocurrencies. This is a big deal because these companies are usually very careful about where they put their money. The fact that they are now investing in crypto shows that the crypto market is becoming more mainstream and accepted.

Writer’s Main Point :star2:

The writer’s main point is that the entry of institutional investors, particularly pension funds, into the crypto market represents a significant milestone for the industry. This is a sign that the crypto market is maturing and becoming more mainstream, as these large, risk-averse institutions are now allocating capital to the space.

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