Should You Follow These 2 Billionaire Hedge Fund Managers and Buy Bitcoin?

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Bitcoin has only risen 11% year-to-date, yet it’s regaining momentum and is once again nearing its all-time high of $109,000 reached in January. Despite ongoing macroeconomic uncertainty, the world’s leading cryptocurrency has surged nearly 25% over the past 30 days—proving its resilience even to the most skeptical investors.

This renewed strength has caught the attention of some of the most influential figures in finance. Recent Securities and Exchange Commission (SEC) Form 13F filings reveal that two billionaire hedge fund managers—Steven Cohen of Point72 Asset Management and Ken Griffin of Citadel Advisors—are significantly increasing their exposure to Bitcoin. But here’s the twist: they’re not buying Bitcoin directly. Instead, they’re using spot Bitcoin ETFs, particularly the iShares Bitcoin Trust ETF (IBIT), as their gateway into the digital asset space.

So, should individual investors follow suit?

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Inside the Portfolios: How Much Bitcoin Are They Really Buying?

SEC Form 13F filings offer a rare glimpse into the investment moves of major institutional players. For the quarter ending March 31, both Cohen and Griffin made notable adjustments to their Bitcoin exposure via IBIT.

Steven Cohen increased his stake in the iShares Bitcoin Trust ETF to a total value of $198.9 million**. He acquired 1.39 million new shares, bringing his total holdings to 4.25 million shares—an increase of **49%**. Meanwhile, Ken Griffin boosted his position to **$146.9 million, purchasing 2.08 million additional shares for a total of 3.14 million. That represents a staggering 195% increase in his Bitcoin ETF holdings during the quarter.

At first glance, these figures seem massive—and they are. However, context matters. Both Point72 and Citadel manage portfolios exceeding tens of billions of dollars. As a result, even these large dollar amounts represent only a small fraction of their overall assets.

In fact, Bitcoin accounts for just 0.56% of Point72’s total portfolio and a mere 0.14% at Citadel Advisors. This cautious allocation underscores a critical point: even billionaires who are bullish on Bitcoin are treating it as a strategic, rather than speculative, holding.

Why Are Billionaires Buying Bitcoin Now?

While SEC filings show what these investors are doing, they don’t explain why. Still, we can draw logical conclusions based on market conditions during Q1.

Bitcoin experienced a powerful rally early in the year, fueled by pro-crypto sentiment and macroeconomic tailwinds. It briefly surpassed $109,000 around the presidential inauguration, reigniting global interest. For institutional investors, this kind of momentum often signals potential upside worth capturing—even if only modestly.

Beyond price performance, many view Bitcoin as a hedge against inflation and economic instability. Unlike traditional assets like stocks or bonds, Bitcoin has historically shown low correlation with major financial markets. This makes it an attractive diversification tool during times of uncertainty—especially when concerns about inflation, interest rates, and geopolitical tensions are high.

Could tariff-related risks and fears of a recession have influenced their decisions? Possibly. If investors anticipate currency devaluation or prolonged economic stress, adding a small allocation of Bitcoin may serve as insurance against broader market downturns.

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Not All Hedge Funds Are Jumping On Board

It’s important to remember that not all hedge fund managers are buying Bitcoin. A review of holdings in the iShares Bitcoin Trust ETF shows that while some firms are increasing exposure, others are actively reducing or exiting their positions.

This divergence highlights a key truth: institutional adoption isn’t uniform. Some funds may be taking profits after the rally, while others are still assessing risk-reward dynamics. For example, Ken Griffin had virtually no Bitcoin exposure before 2025—so while his 195% increase sounds dramatic, it reflects building from near zero rather than an aggressive bet.

Market timing, risk tolerance, and investment philosophy all play roles in these decisions. The takeaway? Even among elite investors, there's no consensus on Bitcoin’s role in a portfolio.

The 1% Rule: A Prudent Approach to Bitcoin Investing

One striking pattern among top hedge funds is the adherence to what could be called the "1% rule." Most maintain Bitcoin allocations below 1% of their total portfolio value. Only about a dozen known hedge fund managers exceed this threshold—and none appear to be going “all in.”

This disciplined approach aligns with guidance from BlackRock, the issuer of IBIT. In its research report titled "Sizing Bitcoin in Portfolios," BlackRock suggests that a 1% allocation to Bitcoin is reasonable for most investors. This level offers meaningful exposure without introducing excessive volatility or concentration risk.

For individual investors, this benchmark serves as a valuable reference point. If your current Bitcoin allocation exceeds 1%, you may be taking on more risk than even seasoned professionals deem appropriate—especially if you're early in your investment journey or have a low risk tolerance.

Diversification remains paramount. While Bitcoin can enhance long-term returns and provide portfolio resilience, it shouldn’t dominate your asset mix. Think of it as a satellite holding—one piece of a broader, balanced strategy.

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Frequently Asked Questions (FAQ)

Q: Are billionaire investors directly buying Bitcoin?
A: No, recent filings show they’re primarily using spot Bitcoin ETFs like IBIT to gain exposure, avoiding direct ownership of the cryptocurrency.

Q: Does a 195% increase in holdings mean Ken Griffin is heavily invested in Bitcoin?
A: Not necessarily. The percentage increase sounds large, but it’s based on a very small initial position. His total allocation remains under 0.15% of Citadel’s portfolio.

Q: Should I invest in Bitcoin just because billionaires are buying it?
A: Not automatically. While their moves are informative, your investment decisions should align with your personal financial goals, risk tolerance, and time horizon.

Q: Is 1% the maximum I should allocate to Bitcoin?
A: It’s a widely recommended benchmark for conservative exposure. Some investors may go higher based on their risk profile, but exceeding 5% significantly increases portfolio volatility.

Q: What happens if Bitcoin drops below $75,000 again? Will big investors sell?
A: It’s uncertain. Some may see dips as buying opportunities, especially if macro risks like inflation persist. Others may rebalance or exit based on internal risk models.

Q: How do spot Bitcoin ETFs differ from other crypto investments?
A: Spot Bitcoin ETFs hold actual Bitcoin and track its market price directly, unlike futures-based ETFs or crypto stocks, which carry different risks and pricing mechanisms.

Core Keywords:

By observing how elite investors approach Bitcoin—with caution, discipline, and measured exposure—individuals can make more informed decisions. Following the leaders doesn’t mean copying them blindly—it means learning from their strategies and applying them wisely to your own financial plan.