London-based Capula Investment Management, in its recent 13F filing with the U.S. Securities and Exchange Commission (SEC), revealed substantial holdings in Bitcoin ETFs valued at $464 million. The main investments are in Bitcoin ETFs from financial giants BlackRock and Fidelity.
Market Context and ETF Performance
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. Worth noting, 13F filings are mandatory quarterly reports submitted to the SEC by institutional investment managers with over $100 million in equity assets.
Growing Appeal Among Institutional Investors
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. The growing appeal of Bitcoin ETFs to large investors is also mirrored by actions taken by other prominent hedge funds, such as Millennium Management, which reported nearly $2 billion in Bitcoin ETF assets in May.
Conclusion
Since the beginning of the year, Bitcoin ETFs have attracted over $50 billion in total inflows, with the recently launched Ether ETF in June already holding about $8 billion in assets. The inflow of capital into these assets continues to grow despite market fluctuations, indicating their increasing popularity among institutional investors.
The growing investments in Bitcoin ETFs by major investment firms like Capula Investment Management highlight the sustained interest and confidence in these financial instruments, despite market volatility.
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