Capula Management, the fourth-largest hedge fund in Europe, just disclosed they made a ballsy investment in Bitcoin ETFs.
In a report filed on August 5, the UK-based $30 billion fund announced they allocated nearly $500 million to Bitcoin ETFs.
US Bitcoin ETFs for European investors
Capula now holds shares in Fidelity Wise Origin Bitcoin Fund and BlackRock’s iShares Bitcoin Trust, with total holdings exceeding $464 million as of June 30.
The filings don’t mention any other crypto assets in Capula’s portfolio.
The market downturn that began in July led to pretty big outflows from Bitcoin ETFs, with nearly $175 million in net outflows recorded between July 31 and August 2.
Despite this, BlackRock’s IBIT and Fidelity’s FBTC are both gaining traction among professional financial advisers, positioning themselves as leading options in the Bitcoin ETF space. Because they are.
Hedge funds increasing Bitcoin ETF holdings
Capula is not alone in its sizeable investments in Bitcoin ETFs. Millennium Management reported holdings worth nearly $2 billion in Bitcoin ETFs and related assets in May.
Since their debut in January, Bitcoin ETFs have attracted over total $50 billion in net investor inflows.
Ether ETFs, introduced in June, now hold around $8 billion in assets. Smaller asset, but still impressive.
ETFs are familiar, well-known products, and for traditional investors, this matters a lot
The ETF structure offers several advantages, including low fees, strong investor protections, and straightforward accounting, making them more attractive to traditional, mainstream investors.
Morgan Stanley, the largest wealth manager in the United States, already started allowing its 15,000 financial advisers to recommend Bitcoin to clients. In the U.S. alone, ETFs represent a massive $9 trillion market.
A very, very big pie to grab a slice from it. On August 5, when the bigger decline started, Bitcoin ETFs also experienced some of their highest trading volumes ever, with over $1 billion worth of shares changing hands within minutes of the market opening. Bitcoin is still the best performing asset of the decade, maybe nothing to worry about.
