Top European Hedge Fund Invests $500 Million in Bitcoin ETFs

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.

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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.

Alexander Stefanov