Capula Management Invests $464 Million in Spot Bitcoin ETFs

Capula Management, Europe’s fourth-largest hedge fund, along with Semler Scientific, a leading healthcare technology company, have both significantly invested in Bitcoin.

This trend highlights a growing institutional interest, even amid the ongoing market fluctuations.

Capula Management and Semler Scientific Bet Big on Bitcoin

On Monday, Capula Management disclosed a substantial purchase amounting to over $464 million in Bitcoin through spot exchange-traded funds (ETFs), as per its latest 13F filings with the US Securities and Exchange Commission. These filings revealed that Capula holds 4,022,346 shares in the Fidelity Wise Origin Bitcoin ETF (FBTC) and 7,419,208 shares in BlackRock’s iShares Bitcoin fund (IBIT), collectively valued at approximately $464 million.

Despite Bitcoin’s drop to a five-month low at $49,000, the hedge fund’s aggressive acquisition highlights a strong belief in the digital asset’s resilience, which soon rebounded to over $55,700.

Read more: How To Trade a Bitcoin ETF: A Step-by-Step Approach

According to Eric Balchunas, Bloomberg’s ETF analyst, trading volumes have remained strong during these market shifts, with around $2.5 billion exchanged during peak hours. Nonetheless, he warned that high volumes on down days are often indicative of investor anxiety.

“If you [are a] Bitcoin bull, you actually dont want to see crazy volume today as ETF volume on bad days is a pretty reliable measure of fear,” Balchunas wrote on X (Twitter).

This observation was confirmed when Bitcoin ETFs saw a net outflow of 168.44 million on a notably volatile Monday.

Bitcoin ETF Data. Source: SoSoValue

Meanwhile, Semler Scientific has been intensifying its Bitcoin strategy. In its second-quarter financial report for 2024, the company announced the acquisition of an additional 101 BTC, costing $6 million.

The firm’s total investment now stands at 929 BTC, with an overall expenditure of $63.0 million. This strategy involves utilizing operational cash flows and proceeds from a $150 million shelf registration statement for ongoing purchases.

Read more: Who Owns the Most Bitcoin in 2024?

Eric Semler, chairman of Semler Scientific, shared his enthusiasm about their strategy.

“We are very encouraged by the strong positive reaction to our recent announcement of a Bitcoin treasury strategy. We continue to firmly believe that Bitcoin is a compelling investment and plan on acquiring additional BTC with our cash from operations, as well as with cash generated from the sale of securities under our $150.0 million shelf registration statement, once effective,” Semler said.

These strategic moves by Capula and Semler reflect a broader pattern of increasing institutional engagement with cryptocurrencies. It also suggests a deeper acceptance of digital assets within traditional investment portfolios.

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