This European hedge fund giant announces a $464 million investment in Bitcoin Spot ETFs

Capula Investment Management LLP, one of Europe’s largest hedge funds, reported that it owns $464 million in Bitcoin ETF shares on BlackRock and Fidelity.

Capula’s disclosure adds to the growing interest of institutional investors in US spot Bitcoin ETFs.

Shares of Capula’s Spot Bitcoin ETF

A filing with the US Securities and Exchange Commission on August 5 revealed that Capula Investment Management had nearly $500 million in shares as of June 30.

Specifically, Capula owns 4,022,346 shares of the Fidelity Wise Origin Bitcoin ETF (FBTC), valued at around $211 million, and 7,419,208 shares of BlackRock’s iShares Bitcoin fund, valued at $253 million.

Meanwhile, the filing does not indicate any other cryptocurrency holdings by the company. As of 2024, Capula Investment Management LLP manages approximately $30 billion in assets.

Other institutional investors are also reporting significant positions in spot Bitcoin ETFs. Last month, the State of Michigan Retirement System disclosed a $6.6 million investment in the ARK 21Shares Bitcoin ETF ( ARKB ) in its 13F filing.

Additionally, Millennium Management, a global hedge fund, disclosed nearly $2 billion in spot holdings of Bitcoin ETFs and a diverse portfolio of BTC-related assets in May.

“King” of Spot Bitcoin ETF Holders

Bloomberg ETF analyst Eric Balchunas described Millennium as the “king” of spot Bitcoin ETF holders, noting its broad exposure compared to the average of new ETF spot investors.

The hedge fund spread its investments in spot products among the ARK 21Shares Bitcoin ETF, Bitwise Bitcoin ETF, Grayscale Bitcoin Trust, iShares Bitcoin Trust and Fidelity Wise Origin Bitcoin ETF.

According to the company’s Q1 13F filing, BlackRock’s Bitcoin fund represents Millennium’s largest allocation, with more than $844 million invested, while Fidelity’s ETF ranks second, with just over 806 million dollars.

Balchunas further revealed that about 60% of new buyers of Bitcoin spot ETFs are investment advisory firms, while hedge funds make up about 25% of those buyers.

13F filings, which institutional investment managers with at least $100 million in equity assets file quarterly, provide a snapshot of long positions in U.S. stocks and options but do not disclose short positions, providing a partial view of the portfolio of an investment manager.

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