In a surprising move that underscores the growing institutional acceptance of cryptocurrency, Capula Management, Europe’s fourth-largest hedge fund, has disclosed a massive investment of nearly $500 million in spot Bitcoin exchange-traded funds (ETFs), according to a recent SEC filing.
The London-based firm, known for its expertise in fixed-income and macroeconomic strategies, has allocated a significant portion of its assets under management to two leading Bitcoin ETFs. Capula has invested $211 million in Fidelity’s FBTC and $253 million in BlackRock’s IBIT, totaling $464 million.
This bold move by Capula Management, which manages over $30 billion in assets, highlights the increasing confidence of traditional financial institutions in the potential of Bitcoin and the broader cryptocurrency market.
Despite the recent volatility in the crypto market, with Bitcoin plunging from $67,500 to $49,000, Capula’s investment aligns with a broader trend of institutional adoption. The SEC’s approval of spot Bitcoin ETFs has made it easier for institutions to gain exposure to Bitcoin, providing a more accessible and regulated investment vehicle.
Moreover, data from Arkham Intelligence suggests that major players like BlackRock, Fidelity, Grayscale, and MicroStrategy are not selling their Bitcoin holdings and are likely buying more, further bolstering confidence in the long-term prospects of the digital asset.
Capula’s investment in Bitcoin ETFs is a significant development in the ongoing institutional embrace of cryptocurrency. As more traditional financial institutions follow suit, it is expected to drive further mainstream adoption and legitimacy for Bitcoin and other digital assets.
