Artificial Intelligence (AI) has been one of Wall Street’s hottest themes, with Nvidia emerging as a top-performing stock. Over the past year, Nvidia’s stock surged by 175%, fueled by its dominance in the AI chip market. However, AI isn’t the only trend capable of turning modest investments into substantial wealth.
Institutional investors are also betting heavily on cryptocurrencies. Several prominent hedge fund managers sold off Nvidia stocks in early 2024 and pivoted to the iShares Bitcoin Trust (NASDAQ: IBIT), an exchange-traded fund (ETF) tracking Bitcoin (BTC).
Hedge Funds Shifting from Nvidia to Bitcoin ETF
- Steven Cohen (Point72 Asset Management): Sold 3.4 million Nvidia shares (63% reduction) and acquired 1.6 million shares of iShares Bitcoin Trust.
- Israel Englander (Millennium Management): Sold 7.8 million Nvidia shares (38% reduction) and bought 10.8 million shares of iShares Bitcoin Trust.
- Ken Griffin (Citadel Advisors): Sold 33.9 million Nvidia shares (93% reduction) and purchased 63,186 shares of iShares Bitcoin Trust.
- David Shaw (D.E. Shaw & Co.): Sold 26.3 million Nvidia shares (70% reduction) and acquired 2.6 million shares of iShares Bitcoin Trust.
These moves are noteworthy because Point72, Millennium, Citadel, and D.E. Shaw rank among the top 15 hedge funds historically by net returns. While they still hold some Nvidia exposure, their shift underscores the importance of portfolio diversification. AI isn’t the sole path to profits—Bitcoin could offer even greater returns.
👉 Discover how institutional investors are leveraging Bitcoin ETFs
Wall Street’s Bullish Bitcoin Predictions
Bitcoin’s price has soared 133% over the past year, driven by enthusiasm for spot Bitcoin ETFs and the April 2024 halving event. Currently trading at $63,000, experts predict significant upside:
| Analyst | Prediction | Upside Potential |
|---|---|---|
| Tom Lee (Fundstrat) | $500,000 by 2029 | 690% |
| Bernstein | $1 million by 2033 | 1,485% |
| Cathie Wood (Ark) | $3.8 million by 2030 | 5,930% |
| Michael Saylor | $3M–$49M by 2045 | 4,660%–77,675% |
These projections hinge on two key factors:
- Spot Bitcoin ETFs are driving institutional demand.
- The halving event reduces mining supply pressure, historically triggering bull runs.
How Spot Bitcoin ETFs Boost Demand
Unlike traditional crypto trading, spot Bitcoin ETFs eliminate friction:
- Investors gain exposure via standard brokerage accounts.
- Lower fees (e.g., iShares Bitcoin Trust charges 0.25% annually vs. exchange fees up to 10,000% per trade).
- Over 592 institutional investors held iShares Bitcoin Trust in Q2 2024, up from 436 in Q1.
Cathie Wood argues that if institutional investors allocate just 5% of their $120 trillion assets** to Bitcoin, its price could skyrocket to **$3.8 million.
👉 Learn why Bitcoin ETFs are a game-changer
Bitcoin’s Historical Trends Favor 2025 Rally
Bitcoin’s supply is capped at 21 million coins, enforced by halving events every four years. Post-halving, mining rewards drop by 50%, reducing sell pressure:
- April 2024 halving cut annual sell pressure from $12 billion to $6 billion.
- Historically, Bitcoin peaks 12–18 months post-halving.
- After hitting $73,000 pre-halving, Bitcoin is poised to surpass this by April–October 2025.
Key Risks to Consider
- Volatility: Bitcoin has seen 50%+ drawdowns multiple times.
- Uncertainty: Predictions are speculative—no guarantees.
FAQ: Bitcoin Investment Insights
Q: Why are hedge funds shifting from Nvidia to Bitcoin?
A: Diversification. Bitcoin’s growth potential rivals AI, especially with ETFs easing institutional access.
Q: What drives Bitcoin’s price surges?
A: Demand spikes (via ETFs) and constrained supply (halving events).
Q: Is Bitcoin too risky for conservative investors?
A: Yes—its volatility suits high-risk tolerance portfolios.
Q: How can I invest in Bitcoin without buying coins directly?
A: Spot Bitcoin ETFs (e.g., IBIT) offer regulated exposure.
Q: When’s the best time to buy Bitcoin?
A: Post-halving dips (e.g., late 2024) often precede rallies.
Q: Could Bitcoin really hit $1 million?
A: Possible if institutional adoption accelerates, but not guaranteed.
Final Thoughts
While Nvidia remains an AI powerhouse, Bitcoin’s 77,675% upside potential makes it a compelling alternative. Spot ETFs and halving mechanics position Bitcoin for a 2025 breakout, but investors must weigh risks carefully. Stay diversified—AI and crypto aren’t mutually exclusive.
### Key SEO Elements:
1. **Keywords**: Bitcoin ETF, Nvidia, halving event, institutional investors, cryptocurrency, spot Bitcoin ETF, Wall Street predictions.
2. **Structure**: H2/H3 headings, bullet points, and tables for readability.
3. **Anchor Text**: Strategically placed engaging links.