Capula Management, Europe’s fourth-largest hedge fund, has invested nearly $500 million in Bitcoin ETFs, public filings reveal.
Capula Management Invests in Bitcoin ETFs
The fourth-largest hedge fund in Europe, Capula Management, reportedly put roughly $500 million into Bitcoin ETFs, as revealed in public filings made on August 5.
Stakes in Fidelity Wise Origin Bitcoin Fund (FBTC) and BlackRock’s iShares Bitcoin Trust (IBIT) are held by the UK-based hedge fund, which manages investor assets worth more than $30 billion.
The disclosure shows that as of June 30th, Capula’s portfolio included shares valued at almost $464 million. According to the documents, Capula does not possess any other cryptocurrency holdings.
Fund researcher Morningstar Inc. informed Cointelegraph that in the two weeks between July 31 and August 2, there was a net withdrawal of over $175 million from Bitcoin exchange-traded funds (ETFs), a result of the sharp decline in the market that began in July.
Roxanna Islam, head of sector and industry research at VettaFi—a fund researcher—told Cointelegraph that among BTC ETFs, BlackRock’s IBIT and Fidelity’s FBTC are becoming blue chips, with substantial adoption among professional financial advisers.
Hedge Funds Show Growing Interest in Bitcoin ETFs
Large holdings in Bitcoin exchange-traded funds have been reported by other hedge funds as well. In May, Millennium Management revealed their almost $2 billion worth of Bitcoin ETF holdings and other Bitcoin-related assets.
Net inflows of more than $50 billion have been attracted to Bitcoin ETFs since their first listing in January. Following suit in June, Ethereum exchange-traded funds (ETFs) currently control almost $8 billion in assets.
Low costs, strong investor protections, and straightforward accounting are just a few of the ways the ETF format makes cryptocurrency more appealing to institutional investors. Reportedly, the biggest US wealth management, Morgan Stanely, has begun enabling its 15,000 financial advisors to suggest Bitcoin to customers.
Cerulli Associates, a fund research firm, estimates that the exchange-traded fund (ETF) industry is worth $9 trillion in the United States alone.
BTC ETFs See Record Trading Volumes on August 5
Within minutes of the market opening on August 5, BTC ETFs witnessed some of the highest-ever trading volumes, with shares worth more than $1 billion changing hands.
According to what 10x Research founder Markus Thielen told Cointelegraph:
“[I]t’s unlikely that significant players will invest amid high volatility and unpredictable prices.”