Capula Management, one of Europe’s largest hedge funds disclosed on August 5 that it has invested nearly $500 million in Bitcoin exchange-traded funds (ETFs).
The UK-based firm, which manages over $30 billion in assets, now holds shares in the Fidelity Wise Origin Bitcoin Fund (FBTC) and BlackRock’s iShares Bitcoin Trust (IBIT).
According to the company’s recent filings, Capula’s Bitcoin ETF holdings are valued at over $464 million as of June 30. The filings also show that Capula does not currently own any other types of crypto assets.
This investment comes during a challenging time for Bitcoin ETFs, which saw a market drop starting in July. Research firm Morningstar Inc. reported that BTC ETFs faced nearly $175 million in net outflows between July 31 and August 2.
However, Roxanna Islam, the head of sector and industry research at VettaFi, noted that these ETFs are becoming more appealing to big investors. Other hedge funds, such as Millennium Management, also reported large Bitcoin ETF holdings, with nearly $2 billion in assets disclosed in May.
Moreover, since Bitcoin ETF first approval in January, it has attracted over $50 billion in total inflow, while Ether ETF, which launched recently in June, now holds about $8 billion in assets.
Bitcoin ETFs also saw very high trading volumes on August 5, with over $1 billion worth of shares traded within minutes of the market opening. In short, while the recent market volatility might discourage some retail investors, major players like Capula are still making massive investments.
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