Europe’s fourth largest hedge fund discloses $500m in spot Bitcoin ETFs

• Capula Management, Europe’s fourth largest hedge fund, has disclosed it holds nearly $500 million in spot Bitcoin ETFs.
• The spot ETF market continues to see increased demand despite Bitcoin’s price woes over the past few weeks.

Capula Management, the fourth largest investment manager in Europe, holds nearly $500 million in spot Bitcoin ETFs.

According to documents filed with the US Securities and Exchange Commission, the hedge fund manager has acquired $253 million of BlackRock’s iShares Bitcoin Trust (IBIT) and $211 million worth of Fidelity’s Wise Origin Bitcoin (FBTC) ETF.

Capula reveals its spot ETF holdings at a time the market is struggling with price downward pressure.

Institutional demand for Bitcoin ETFs is however seeing increased traction, with several pension funds among those to buy into the digital asset investment product. In one of the biggest moves, Morgan Stanley became the first major bank on Wall Street to allow financial advisors to pitch spot Bitcoin ETFs to its clients.

Data on by Arkham also showed that major holders of BTC, including MicroStrategy, BlackRock, Fidelity and Grayscale have not sold their BTC assets despite the market losses.

Bitcoin price

On Monday, Bitcoin dipped below $50k to test prices seen in February. However, BTC has bounced above $53k and the crypto market is optimistic of a potential recovery amid Fed interest rate cuts.

Earlier in the day, Wharton professor Jeremy Siegel called for the Fed to slash its fund rate by 75 basis points and another similar cut at its next meeting in September.

“I’m calling for a 75 basis point emergency cut in the Fed funds rate, with another 75 basis point cut indicated for next month at the September meeting – and that’s minimum,” says Wharton’s Jeremy Siegel: pic.twitter.com/s4CgWx962Q

— Squawk Box (@SquawkCNBC) August 5, 2024

According to Polymarket bets, bettors are seeing a 29% chance the Fed takes an emergency interest rate cut.