On August 5, Capula Management, one of Europe's largest hedge funds, revealed it has invested close to $500 million in Bitcoin exchange-traded funds (ETFs).
Based in the UK and managing over $30 billion in assets, Capula has acquired shares in the Fidelity Wise Origin Bitcoin Fund (FBTC) and BlackRock’s iShares Bitcoin Trust (IBIT).
As of June 30, Capula’s holdings in these Bitcoin ETFs amount to more than $464 million. The disclosure does not indicate any other cryptocurrency investments by the fund.
Following a sharp market decline in July, inflows into Bitcoin ETFs have reversed, with nearly $175 million in net outflows reported between July 31 and August 2, according to Morningstar Inc.
IBIT and FBTC are gaining traction as leading options among Bitcoin ETFs, with notable interest from financial advisors, according to Roxanna Islam, head of sector and industry research at VettaFi.
In addition, other hedge funds have also disclosed significant positions in Bitcoin ETFs. For instance, Millennium Management reported nearly $2 billion in BTC ETF holdings and various Bitcoin-related assets in May.
Metaplanet is aggressively expanding its Bitcoin holdings through an unconventional $5.4 billion capital raise, positioning itself as a leading BTC proxy in Asia.
BlueBird Mining Ventures, a London-listed firm traditionally focused on gold, is making headlines after announcing it will liquidate its gold reserves and begin accumulating Bitcoin as a treasury asset.
Bitcoin tumbled sharply today, shedding more than 3.5% in a matter of hours and briefly flirting with the critical $100,000 level.
Bitcoin is treading water near $105,000, but pressure is building on both sides of the trade as macro forces tighten.