Capula Management has made significant investments in Spot Bitcoin ETFs. This investment includes over $250 million in BlackRock’s iShares Bitcoin Trust (IBIT) and more than $210 million in Fidelity’s Wise Origin Bitcoin Trust (FBTC).
Capula Management, which is the fourth-largest hedge fund in Europe, has recently invested $500 million in spot Bitcoin ETFs. This big investment, shared in a report with the US Securities and Exchange Commission (SEC), shows that large institutions are increasingly interested in cryptocurrency. Even though the market can be unstable and unpredictable, this move reflects a rising confidence and demand for digital assets among major financial players.
Details of the Investment
According to the filing, Capula owns shares worth more than $464 million as of June 30. The filings don’t show that Capula owns any other cryptocurrencies. This investment happens during a tough market downturn that started in July, which caused spot Bitcoin ETFs to see almost $175 million in net outflows between July 31 and August 2, according to Morningstar Inc.
Capula Management has made significant investments including over $250 million in BlackRock’s iShares Bitcoin Trust (IBIT) and more than $210 million in Fidelity’s Wise Origin Bitcoin Trust (FBTC). This strategic move marks a shift for the fund as it enters the growing spot Bitcoin ETF market, this trend aligns with broader changes in the financial sector, such as Morgan Stanley advising its wealth managers to sell spot Bitcoin ETFs to clients, reflecting a broader institutional embrace of cryptocurrencies.
Market Trends and Institutional Interest
BlackRock’s IBIT and Fidelity’s FBTC are quickly becoming popular Bitcoin ETFs, drawing a lot of interest from professional financial advisers. Roxanna Islam, who leads sector and industry research at VettaFi, has pointed out that more and more advisers are starting to use these ETFs. Other large hedge funds are also investing heavily in Bitcoin ETFs. For example, Millennium Management reportedly holds nearly $2 billion in these ETFs. This growing interest shows that Bitcoin ETFs are becoming more popular with major investors and financial professionals.
Growth of Bitcoin ETFs
Spot Bitcoin ETFs have attracted over $50 billion in investments, since the approval earlier this year. Ether ETFs, introduced in June, now hold around $8 billion in assets. These ETFs are popular because they offer low fees, strong investor protections, and easy accounting. It makes them appealing to mainstream investors. Morgan Stanley, the largest wealth manager in the US, has begun allowing its 15,000 financial advisers to recommend Bitcoin to their clients.
Despite some recent market challenges, Bitcoin had a strong performance in 2024, hitting a record high of $73,000 in March. More institutions are investing in Bitcoin and adding it to their portfolios leading the market to continue growing and becoming more stable.
Bitcoin ETFs Reach $1 Billion in Trading Volume
Spot Bitcoin ETFs recently reached a major milestone by hitting $1 billion in trading volume on Monday. This happened even though both the stock and crypto markets were falling…
Analysts believe that the increase is due to market ups and downs, with investors seeing Bitcoin as a safer option. The head of research at Galaxy Digital pointed out that Bitcoin trading volumes have been unusually high, suggesting that big investors are starting to see Bitcoin as a safe bet in a shaky global economy.
Despite Bitcoin’s unpredictable prices and high volatility, institutional interest in it is strong, showing that the cryptocurrency market is becoming more stable and mature.
Also Read:- Bitcoin Market Price: BTC Reclaims Important $55K Mark!
