Europe’s 4th Largest Hedge Fund Discloses Nearly $500M Spot Bitcoin ETF Holdings

Europe’s fourth-largest hedge fund, Capula Management, has recently disclosed nearly $500 million in Spot Bitcoin exchange-traded fund (ETF) holdings in a filing with the U.S. Securities and Exchange Commission (SEC).

The substantial investment underscores the growing institutional interest in Bitcoin, even amid market fluctuations.

Capula Invests $464M in Bitcoin ETFs

According to the filing, Capula Management owns shares worth more than $464 million in total, reflecting its portfolio as of June 30. This development comes as the BTC investment vehicles have topped $1 billion in trading volume Monday.

The hedge fund, which is based in the United Kingdom and oversees around $30 billion worth of assets under management (AUM), holds shares in Fidelity Wise Origin Bitcoin Fund (FBTC) and BlackRock’s iShares Bitcoin Trust (IBIT).

Specifically, the firm’s BlackRock’s iShares Bitcoin Trust (IBIT) is over 7.4 million shares which accounts for more than $250 million. Also, the company holds over 4 million shares in the Fidelity Wise Origin Bitcoin ETF (FBTC), which is worth around $210 million. 

Capula’s disclosure highlights the increasing acceptance of digital assets within traditional finance sectors. This move is part of the firm’s broader strategy to diversify its investment portfolio and capitalize on emerging opportunities in the digital asset space.

Growing Interest in Bitcoin ETFs

Institutional interest in spot Bitcoin ETFs remains strong despite bitcoin’s significant drop to a six-month low of under $50,000 before recovering to over $55,000 as of press time.

Since the product was launched in January, there has been a growing trend of institutional investors showing interest in the US spot Bitcoin ETFs. In just six months of trading, the fund has attracted over $17 billion in net cumulative inflows and holds assets worth $59 billion.

Last month, the State of Michigan Retirement System revealed a $6.6 million stake in the ARK 21Shares Bitcoin ETF (ARKB) in its 13F filing.

Similarly, Morgan Stanley, an investment banking firm recently allowed wealth advisers to offer clients Spot Bitcoin ETFs. Specifically, the firm told over 15,000 financial advisers to offer the products to eligible customers. The offering will begin on August 7th.