The hedge fund, considered the fourth largest in Europe, owns more than 11,4 million shares in the Bitcoin spot ETFs of BlackRock and Fidelity Investments.
Capula Investment Management, one of the largest hedge funds in Europe and the world, has revealed that it holds a significant investment in two of the most prominent Bitcoin ETFs on the market, specifically, the iShares Bitcoin Trust (IBIT), from BlackRock and the Fidelity Wise Origin Bitcoin Fund (FBTC), from Fidelity Investments.
The 13F filing, submitted by the hedge fund to the U.S. Securities and Exchange Commission (SEC), revealed that Capula Investment owns 11,44 million shares spread across IBIT and FBTC. This investment, valued at approximately $464 million, according to the regulatory filing, marks a significant milestone in the adoption of Bitcoin and digital assets by large financial institutions.
Capula Investment's investment in Bitcoin ETFs
In the filing, Capula reported that as of the end of the second quarter of this year, it had acquired 4.022.346 shares of Fidelity Investments' Bitcoin ETF, investing approximately $211 million worth of shares in the fund's shares. In addition, Capula also disclosed a substantial investment in BlackRock's Bitcoin fund. According to the filing, presentation, currently owns 7.419.208 shares of the iShares Bitcoin Trust, which are valued at around $253 million.
Despite the recent decline experienced by the bitcoin price, which traded as high as $49.000 on August 5 before recovering above $55.900 at the time of writing, the hedge fund’s recent disclosed investment highlights that interest in spot Bitcoin ETFs remains robust.
The filing by Capula Investment this week adds to a growing number of reports from other financial institutions that are also increasing their positions in Bitcoin-based investment funds. One of those that disclosed holding shares of BTC spot ETFs was Millennium Management, another prominent hedge fund, which reported nearly $2.000 billion in the financial instruments. Also, the state pension funds, like the one in Wisconsin and Jersey City, have invested in the leading cryptocurrency through exchange-traded funds that trade on U.S. stock markets.
Bitcoin continues as a growing trend among financial institutions
The fact that a prominent firm like Capula Investment, which has approximately $30.000 billion in assets under management, is investing in Bitcoin reflects how the market-leading cryptocurrency has been transforming into a legitimate investment asset for institutions.
Bloomberg ETF analyst Eric Balchunas commented on social media that trading volumes for these financial products, which exceeded $2.500 billion in early trading on Monday, reflect strong engagement from the investor community.
Balchunas also highlighted that the high liquidity offered by Bitcoin ETFs is a major draw for traders and institutions, suggesting that even if volatility persists in the crypto market, the infrastructure of these exchange-traded funds could facilitate greater adoption for Bitcoin and other cryptocurrencies in the future.
The hedge fund’s investment comes as institutional interest in Bitcoin spot ETFs continues to grow. Recently, the State Retirement System of Michigan also reported a $6,6 million stake in the ARK 21Shares Bitcoin ETF (ARKB), from Ark Invest and 21Shares. This growing investment trend suggests that spot ETFs are quickly becoming a popular vehicle for exposure to digital assets.
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