Susquehanna International Group, a prominent quantitative trading firm, has invested more than $1 billion in Bitcoin exchange-traded funds (ETFs) during the first quarter of 2024, according to a recent filing with the U.S. Securities and Exchange Commission (SEC).

The 13F-HR filing, submitted on May 7, revealed that Susquehanna had acquired a substantial stake in the Grayscale Bitcoin Trust (GBTC). Specifically, the firm disclosed ownership of 17,271,326 shares in GBTC, with a market value of approximately $1.09 billion as of March 31, 2024.

In addition to its GBTC investment, Susquehanna also reported owning 1,349,414 shares of the Fidelity Wise Origin Bitcoin Fund (FBTC), valued at roughly $83.74 million on the same date. The FBTC ETF provides investors with exposure to Bitcoin's spot price.

Furthermore, the quantitative trading firm increased its stake in the ProShares Bitcoin Strategy ETF (BITO), an ETF that offers investors exposure to Bitcoin futures contracts. According to investment research firm Fintel, Susquehanna owned 7,907,827 shares of BITO as of March 31, valued at approximately $255.42 million — a significant increase of 57.59% from a February filing that listed 5,021,149 shares.

Susquehanna also held indirect exposure to Bitcoin's spot price through its investment in MicroStrategy stock (MSTR), a company that holds a substantial amount of Bitcoin on its balance sheet. However, the trading firm reduced its stake in MicroStrategy by nearly 15% during the portfolio rebalancing, decreasing its holdings from 287,180 shares in February to 244,863 shares on March 31.

It is important to note that Susquehanna's cryptocurrency allocation represents only a small fraction of the trading firm's overall portfolio, which ended the first quarter valued at more than $575.8 billion. Among the company's top investments are NVIDIA Corporation and the index-tied SPDR S&P 500 ETF Trust.

In addition to its Bitcoin-related investments, Susquehanna's new holdings for the past quarter included shares of the convertible bonds firm Convertible Zero, bonds from NRG Energy Inc., and preferred stocks in Albemarle Corporation, further diversifying its portfolio.

The growing interest of trading firms and financial advisers in Bitcoin funds is a notable trend, as these investment vehicles provide a more accessible and regulated avenue for gaining exposure to digital assets. In April, Fidelity's Bitcoin ETF secured $40 million from two traditional financial advisers, Legacy Wealth Management and United Capital Management of Kansas, with each fund investing $20 million in FBTC and joining the fund's top shareholders.

The involvement of these financial advisers, which cater to a significant population of baby boomers who own a sizable share of the country's wealth, further underscores the increasing mainstream acceptance and adoption of Bitcoin-related investment products.

As institutional interest in cryptocurrencies continues to grow, Susquehanna International Group's substantial investment in Bitcoin ETFs represents a significant milestone, signaling the recognition of digital assets as a legitimate asset class by major players in the financial industry.