London-based Capula Investment Management reported substantial holdings in Bitcoin exchange-traded funds (ETFs), valued at $464 million. This information came to light through the firm’s recent 13F filing with the U.S. Securities and Exchange Commission (SEC).
Holdings Information
As of June 30, Capula held 4,022,346 shares in the Fidelity Wise Origin Bitcoin ETF (FBTC), worth approximately $211 million. Additionally, the firm owned 7,419,208 shares in BlackRock’s iShares Bitcoin Trust, amounting to $253 million.
Market Context and ETF Performance
Capula's substantial investment comes during a turbulent period for Bitcoin ETFs. The market experienced a significant drop starting in July, with BTC ETFs facing nearly $175 million in net outflows between July 31 and August 2, according to Morningstar Inc. Furthermore, Bitcoin fell below $50,000 due to fears of a recession in the US and other macroeconomic factors on August 5. Despite this, Bitcoin ETFs saw very high trading volumes on August 5, with over $1 billion worth of shares traded within minutes of the market opening. This indicates strong engagement from the investment community.
Growing Appeal Among Institutional Investors
Roxanna Islam, head of sector and industry research at VettaFi, noted the increasing attractiveness of Bitcoin ETFs to large investors. Capula’s move mirrors actions taken by other prominent hedge funds, such as Millennium Management, which reported nearly $2 billion in Bitcoin ETF assets in May. Also, 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. Since the first approval of a Bitcoin ETF in January, these investment vehicles have attracted over $50 billion in total inflows. The more recently launched Ether ETF in June already holds about $8 billion in assets.
Investment activity in Bitcoin ETFs continues to grow despite market volatility and economic fluctuations. Moves by companies like Capula Investment Management indicate the increasing significance of these financial instruments for institutional investors.
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