August 7, 2024
By Anjali Kochhar
According to a report from the United States Securities and Exchange Commission (SEC) dated Monday, Capula Investment Management, a prominent hedge fund based in London, holds $464 million in spot Bitcoin ETF shares. This substantial investment, reported as of June 30, indicates that Capula has significant positions in spot Bitcoin ETFs offered by BlackRock and Fidelity, as of the end of the second quarter.
The research reveals a significant shift, as prominent hedge funds such as Capula commit more capital to digital assets. This decision underscores a broader trend among institutional investors, who are increasingly including digital assets into their portfolios. Despite the recent decline in Bitcoin’s value, which has impacted the performance of associated ETFs, Capula’s investment demonstrates these huge financial organizations’ long-term belief in Bitcoin’s potential.
As of 1:11 p.m. EST on Monday, Capula’s Bitcoin ETF holdings have depreciated to approximately $420 million, reflecting the broader market decline. This decline in value is symptomatic of the current volatility in the cryptocurrency markets, yet it underscores the enduring interest from major financial players. Earlier this year, Millennium Management also made headlines by acquiring nearly $2 billion worth of crypto-based ETF shares, further illustrating the growing mainstream acceptance of digital assets.
Capula’s substantial holdings are indicative of a larger trend where institutional investors are becoming more involved in the cryptocurrency sector. Despite recent market turbulence, the continued investment by hedge funds signals a robust belief in the future of Bitcoin and other digital assets.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
