Capula Management, Europe’s fourth most prominent hedge fund, recently revealed a $500 million investment in Spot Bitcoin ETFs. This submission to the US Securities and Exchange Commission (SEC) is a significant development in a highly erratic market. While trading volumes for Bitcoin investment products rose, Capula’s investment highlighted the increasing institutional demand for cryptocurrency.
Bitcoin ETFs Reach $1 Billion Trading Volume
New information shows that Bitcoin ETFs hit $1 billion in trading volume on Monday. This spike comes when both stock and crypto markets have been on a downward slope. Market analysts have linked the rise in trading activity to volatility and perceived risk among investors.
The head of research at Galaxy Digital also shared his thoughts on the matter, stating that the trading of Bitcoin products has been “very high” in the past few days. The trading volume of these products shows that there is still a high demand for Bitcoin, even with the general market decline. This increase in activity shows that more institutional investors are turning to cryptocurrency as a haven as the global economy becomes more volatile.
Capula Invests Heavily in Bitcoin ETF Market
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Capula Management has also made significant allocations of over $250 million in BlackRock’s iShares Bitcoin Trust (IBIT) and over $210 million in the Fidelity Wise Origin Bitcoin Trust (FBTC). These investments mark a strategic change as the fund enters the growing Bitcoin ETF market.
Capula’s move occurs when other significant changes occur in the financial sector. In recent news, Morgan Stanley has instructed its 15,000 wealth managers to sell Spot Bitcoin ETFs to clients. This further expansion of Bitcoin ETFs shows that more and more financial institutions are turning to this cryptocurrency.
BTF ETFs Draw $18 Billion in Inflows
Since their approval this year, Bitcoin ETFs have witnessed increased investment inflows. These products have attracted more than $18 billion in net investments. Despite the recent market crash, Bitcoin has been performing well in 2024, and the asset hit its record high of $73,000 in March.
The increase in Bitcoin’s price can be attributed to institutional interest and the availability of Bitcoin ETFs. Betting on these ETFs is expected to rise as the market finds its footing in the wake of recent turbulence. Bitcoin’s appreciation and institutional backing underscore the crypto market’s stability and maturation.
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Also Read: MicroStrategy’s Michael Saylor HODL Tweet Amid Bitcoin Crash
