Chicago-based hedge fund CTC Alternative Strategies has disclosed its significant exposure to Bitcoin through a substantial investment in BlackRock's Bitcoin ETF.

In a recent filing with the United States Securities and Exchange Commission (SEC), CTC Alternative Strategies Ltd., a Chicago-based hedge fund, revealed its holdings of 685,364 shares in BlackRock's iShares Bitcoin Trust (IBIT). This investment, valued at $27.7 million, represents the second-largest holding in the firm's entire portfolio, which is worth approximately $160 million.

Spot Bitcoin ETFs Gain Traction in the US

The approval of spot Bitcoin ETF products by the US SEC in January has ushered in a new era for investors in the traditional financial market. For the first time since the introduction of Bitcoin in 2013, these investors can now directly invest in the asset class.

Spot Bitcoin ETFs are considered a safer investment option due to regulatory oversight and compliance requirements from the SEC. BlackRock, a leading asset manager, has recorded the biggest inflow into its spot Bitcoin ETF since its inception.

Bullish Implications for Bitcoin

The investments into spot Bitcoin ETF products were anticipated by market experts, who predict that more firms will unveil their holdings in the coming months. This trend is seen as bullish for Bitcoin, as it contributes to the supply crunch driven by entities like MicroStrategy through their accumulation of the cryptocurrency.

With increased demand and reduced supply following the halving event, Bitcoin is poised to experience significant price appreciation in the future. While some projections suggest a price target of around $100,000 in this bull cycle, Bitcoin needs to overcome its current bearish headwinds.

At the time of writing, Bitcoin is trading at $62,549.02, up 1.65% in the past 24 hours but down 9.62% over the past month. As more firms disclose their investments in spot Bitcoin ETF products, it is expected to have a positive impact on the overall Bitcoin market.