Capula Investment Management Holds $464 Million in BlackRock and Fidelity Spot Bitcoin ETFs

• Institutional interest in spot Bitcoin ETFs is on the rise, exemplified by Capula Investment Management LLP’s significant holdings.
• This trend is mirrored by other major financial entities, demonstrating a growing confidence in Bitcoin-based financial products.
• Eric Balchunas from Bloomberg has highlighted the significance of these investments, calling Millennium Management the “king” of spot Bitcoin ETF holders.

Institutional investments in spot Bitcoin ETFs are growing, showcasing increased confidence in crypto financial products.

Capula’s Major Investment in Bitcoin ETFs

Capula Investment Management LLP, a prominent European hedge fund, has unveiled that it holds $464 million across two notable spot Bitcoin ETFs. According to a filing with the U.S. Securities and Exchange Commission dated August 5, Capula’s investment includes 4,022,346 shares in the Fidelity Wise Origin Bitcoin ETF (FBTC) valued at approximately $211 million, and 7,419,208 shares in BlackRock’s iShares Bitcoin fund, worth around $253 million.

Broader Institutional Movement

The move by Capula echoes a broader trend among institutional investors showing a heightened interest in Bitcoin ETFs. For example, the State of Michigan Retirement System has declared a $6.6 million stake in the ARK 21Shares Bitcoin ETF (ARKB). Similarly, Millennium Management, another heavyweight hedge fund, disclosed holdings nearing $2 billion in various spot Bitcoin ETFs in its May reporting.

Millennium’s Dominant Position

Bloomberg’s ETF analyst Eric Balchunas has labeled Millennium Management as the dominant player in the spot Bitcoin ETF space. The firm has strategically diversified its BTC holdings across several funds, including ARK 21Shares Bitcoin ETF, Bitwise Bitcoin ETF, Grayscale Bitcoin Trust, and more. Notably, the largest chunk of Millennium’s investment is in BlackRock’s Bitcoin fund with over $844 million, followed closely by $806 million in Fidelity’s ETF.

Market Insights from 13F Filings

The SEC’s 13F filings provide an analytical overview of institutional investments in U.S. equities, highlighting long positions while omitting short positions. These filings reveal that approximately 60% of new spot Bitcoin ETF investors are advisory firms, with hedge funds accounting for about 25%. Though providing a partial view, these disclosures offer significant insights into the strategic allocation of institutional portfolios.

Conclusion

The increasing involvement of major financial institutions in spot Bitcoin ETFs signals a maturation and acceptance of Bitcoin within mainstream financial markets. This trend underscores a growing confidence in the stability and potential of cryptocurrency investments, suggesting a promising outlook for the broader adoption of Bitcoin-based financial instruments.