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Bitcoin ETF

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Capula Management, Europe’s fourth-largest hedge fund, has invested nearly $500 million in Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) exchange-traded funds, <a href="https://www.sec.gov/Archives/edgar/data/1557017/000117266124003075/xslForm13F_X02/infotable.xml" target="_blank" rel="noopener nofollow">according</a> to public disclosures filed on Aug. 5.&nbsp;
The hedge fund, which is based in the United Kingdom and&nbsp;<a href="https://trendspider.com/learning-center/capula-investment-management/" target="_blank" rel="noopener nofollow">manages</a> upward of $30 billion in investor assets, holds shares in Fidelity Wise Origin Bitcoin Fund (FBTC) and BlackRock’s iShares Bitcoin Trust (IBIT). 
According to the filing, Capula owns shares worth more than $464 million in total, reflecting its portfolio as of June 30. The filings do not indicate that Capula owns any other crypto assets. 
The severe market drawdown that started in July has reversed inflows into BTC ETFs, which saw nearly $175 million in net outflows between July 31 and Aug. 2, Morningstar Inc., a fund researcher, told Cointelegraph.
BlackRock’s IBIT and Fidelity’s FBTC are emerging as blue chips among BTC ETFs, with strong uptake among professional financial advisers, Roxanna Islam, head of sector and industry research at VettaFi — a fund researcher —&nbsp;<a href="https://cointelegraph.com/news/crypto-adoption-financial-advisers">told Cointelegraph</a>.
Other hedge funds are also reporting sizable positions in Bitcoin ETFs. Millennium Management in May <a href="https://www.sec.gov/Archives/edgar/data/1273087/000127308724000071/xslForm13F_X02/MLP_13F_2024Q1.xml" target="_blank" rel="noopener nofollow">disclosed</a> BTC ETF holdings worth nearly $2 billion, as well as a variety of Bitcoin-related assets. 
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 <img src="https://s3.cointelegraph.com/uploads/2024-08/b626e662-9f63-49fb-8200-037f7862ab4d.png" alt="Europe’s fourth largest hedge fund put nearly $500M in Bitcoin ETFs — Filing ">
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 ETFs bring crypto to a multi-trillion dollar market. Source:&nbsp;Statista
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Related: <a href="https://cointelegraph.com/news/crypto-adoption-financial-advisers">Crypto ready for next phase of adoption: Winning over financial advisers</a>
Since first listing in January, Bitcoin ETFs have pulled upwards of $50 billion in net investor inflows. Ether (<a href="https://cointelegraph.com/ethereum-price">ETH</a>) ETFs followed in June and now command approximately $8 billion in assets. 
The ETF structure offers benefits — including low fees, robust investor protections, and easy accounting— that make crypto more palatable to mainstream investors. Morgan Stanely, the largest wealth manager in the United States, <a href="https://cointelegraph.com/news/morgan-stanley-wealth-managers-blackrock-fidelity-bitcoin-etfs-report">has reportedly started allowing</a> its 15,000 financial advisers to recommend Bitcoin to clients. 
In the US alone, ETFs represent a $9 trillion market, according to Cerulli Associates, a fund researcher. 
On Aug. 5, BTC ETFs saw some of the <a href="https://cointelegraph.com/news/bitcoin-etf-trading-volume-1-billion-amid-crypto-crash-galaxy">highest-ever trading volumes</a>, with upward of $1 billion worth of shares changing hands within minutes of the market’s opening. 
“[I]t’s unlikely that significant players will invest amid high volatility and unpredictable prices,” Markus Thielen, founder of 10x Research, <a href="https://cointelegraph.com/news/bitcoin-economy-falters-10x-report">told Cointelegraph</a>.
Magazine: <a href="https://cointelegraph.com/magazine/spot-ethereum-etf-ether-price-bitcoin-patrick-scott-dynamo-defi-hall-of-flame/">Ethereum’s recent pullback could be a gift: Dynamo DeFi, X Hall of Flame</a>

Europe’s fourth largest hedge fund put nearly $500M in Bitcoin ETFs — Filing

Cointelegraph

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