As a seasoned crypto investor with a decade of experience under my belt, witnessing Capula Management’s $500 million investment into Bitcoin ETFs is nothing short of exhilarating. The UK-based behemoth, managing over $30 billion in assets, has taken a significant leap into the digital asset realm, and it’s hard not to feel validated as an early adopter.
On August 5, Capula Management, a significant European hedge fund, revealed an investment of approximately $500 million in Bitcoin-based Exchange-Traded Funds (ETFs).
The company based in the United Kingdom, boasting management of more than $30 billion in investments, currently owns stocks in both the Fidelity Wise Origin Bitcoin Fund (equivalent to FBTC) and BlackRock’s Bitcoin-focused trust fund, known as the iShares Bitcoin Trust (referred to as IBIT).
As per the latest reports submitted by the company, the market value of Capula’s Bitcoin Exchange-Traded Fund (ETF) holdings surpassed $464 million on June 30. Noteworthy is that, as indicated in these filings, Capula does not possess any other forms of cryptocurrency assets at this time.
During a tough period for Bitcoin Exchange-Traded Funds (ETFs), marked by a downward market trend starting in July, this investment is being made. According to Morningstar Inc., a research firm, Bitcoin ETFs experienced approximately $175 million in net outflows from July 31 to August 2.
In contrast, Roxanna Islam, who leads sector and industry research at VettaFi, pointed out that Exchange-Traded Funds (ETFs) related to Bitcoin are growing in popularity among larger investors. Moreover, significant Bitcoin ETF holdings have been reported by hedge funds like Millennium Management, with approximately $2 billion in assets disclosed in May.
Following the initial approval of the Bitcoin ETF in January, a staggering $50 billion has flowed into it. On the other hand, the Ether ETF, launched more recently in June, currently manages approximately $8 billion in assets.
On August 5, Bitcoin ETFs experienced exceptionally high trading activity as more than a billion dollars’ worth of shares were exchanged swiftly upon market opening. To put it simply, despite the current market fluctuations potentially deterring some individual investors, prominent entities such as Capula are still actively making significant investments.
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2024-08-06 01:10