- Europe’s 4th largest hedge fund, Capula Management, disclosed $500 million in Spot Bitcoin ETF holdings in an SEC filing.
- This includes over $250 million in BlackRock’s iShares Bitcoin Trust (IBIT) and over $210 million in Fidelity’s Wise Origin Bitcoin Trust (FBTC).
- The disclosure comes amid a surge in interest for Bitcoin ETFs, with their cumulative trading volume topping $1 billion on Monday.
The recent downturn in the crypto and stock markets has led to a surge of interest in Bitcoin exchange-traded funds (ETFs). Capula Management, Europe’s fourth largest hedge fund, has disclosed $500 million in holdings of Spot Bitcoin ETFs. This highlights the growing institutional adoption of these investment vehicles.
Capula’s Large Investment in Bitcoin ETFs
Capula Management revealed in an SEC filing that it holds over $250 million in BlackRock’s iShares Bitcoin Trust (IBIT) and over $210 million in Fidelity’s Wise Origin Bitcoin Trust (FBTC). The disclosure comes after a $2 trillion stock market crash and a $12 billion crypto market liquidation on Monday.
Despite the downturn, Galaxy Digital’s head of research noted the crash resulted in “extremely elevated trading activity” for the Bitcoin ETF products. These BTC ETFs have seen over $18 billion in net inflows so far in 2024.
Rising Institutional Interest in Bitcoin
Capula’s investment follows growing institutional interest in Bitcoin this year. In March, Bitcoin hit an all-time high of $73,000 driven largely by institutional investors.
Morgan Stanley also recently allowed its 15,000 wealth advisors to offer Spot Bitcoin ETFs to clients. According to Bloomberg, the offerings will begin as early as next week.
The SEC approved several Bitcoin ETFs in January 2024. Since then, the products have become increasingly common in the wider finance sector.
Conclusion
Major institutional investors like Capula Management are clearly betting big on Bitcoin ETFs, despite recent market volatility. As these products gain broader adoption, Bitcoin is cementing itself as an established institutional asset class.
