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

• Capula Administration, Europe’s fourth largest hedge fund, has disclosed it holds almost $500 million in spot Bitcoin ETFs.
• The spot ETF market continues to see elevated demand regardless of Bitcoin’s worth woes over the previous few weeks.

Capula Administration, the fourth largest funding supervisor in Europe, holds almost $500 million in spot Bitcoin ETFs.

In response to paperwork filed with the US Securities and Alternate Fee, the hedge fund supervisor has acquired $253 million of BlackRock’s iShares Bitcoin Belief (IBIT) and $211 million price of Constancy’s Sensible Origin Bitcoin (FBTC) ETF.

Capula reveals its spot ETF holdings at a time the market is combating worth downward stress.

Institutional demand for Bitcoin ETFs is nonetheless seeing elevated traction, with a number of pension funds amongst these to purchase into the digital asset funding product. In one of many greatest strikes, Morgan Stanley grew to become the primary main financial institution on Wall Road to enable monetary advisors to pitch spot Bitcoin ETFs to its purchasers.

Information on by Arkham additionally confirmed that main holders of BTC, together with MicroStrategy, BlackRock, Constancy and Grayscale haven’t offered their BTC belongings regardless of the market losses.

Bitcoin worth

On Monday, Bitcoin dipped under $50k to check costs seen in February. Nevertheless, BTC has bounced above $53k and the crypto market is optimistic of a possible restoration amid Fed rate of interest cuts.

Earlier within the day, Wharton professor Jeremy Siegel referred to as for the Fed to slash its fund charge by 75 foundation factors and one other comparable reduce at its subsequent assembly in September.

“I am calling for a 75 foundation level emergency reduce within the Fed funds charge, with one other 75 foundation level reduce indicated for subsequent month on the September assembly – and that is minimal,” says Wharton’s Jeremy Siegel: pic.twitter.com/s4CgWx962Q

— Squawk Field (@SquawkCNBC) August 5, 2024

In response to Polymarket bets, bettors are seeing a 29% likelihood the Fed takes an emergency rate of interest reduce.