This hedge fund invested $464 million in Bitcoin ETFs

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

This trend reflects the growing institutional interest in the ongoing market turmoil.

Capula Management and Semler Scientific bet big on Bitcoin

On Monday, Capula Management announced a massive purchase of more than $464 million in Bitcoin through spot exchange-traded funds (ETFs), according to its 13F filings with the US Securities and Exchange Commission. These documents confirm that Capula holds shares in the Fidelity Wise Origin Bitcoin ETF (FBTC) and 7,419,208 shares in BlackRock's iShares Bitcoin Fund (IBIT), which are valued at a total of $464 million.

While bitcoin has hit a five-month low of $49,000, the hedge fund's aggressive buying underscores strong confidence in the resilience of the digital asset, which has recently rebounded above $55,700.

Read more: How to trade Bitcoin ETF: A step-by-step approach

According to Bloomberg ETF analyst Eric Balchunas, trading volumes have remained strong during these market shifts, with around $2.5 billion traded during peak hours. However, he cautioned that high volumes on down days often indicate investor anxiety.

“Hey you [are a] Bitcoin bull, don't want to see crazy volume today as ETF volume on bad days is a very reliable measure of fear,” Balchunas wrote on X (Twitter).

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

Meanwhile, Semler Scientific has been strengthening its Bitcoin strategy. In its financial report for the second quarter of 2024, the company announced that it has acquired an additional 101 BTC, which is 6 million dollars.

The company's total investment now stands at 929 BTC, with a total cost of $63.0 million. This strategy involves using cash flow from the $150 million shelf statement for further acquisitions.

Read more: Who will have the most Bitcoins in 2024?

Eric Semler, chairman of Semler Scientific, shared his enthusiasm for their approach.

“We are very encouraged by the strong positive response to our recent announcement of the Bitcoin Treasury Strategy. We continue to strongly believe that Bitcoin is a compelling investment and plan to generate additional BTC in cash from operations, as well as proceeds from the sale of securities under our $150.0 million shelf subscription statement, once effective. Semler said.

These strategic moves by Cappula and Semler reflect a broader approach to increasing institutional engagement with cryptocurrencies. It also suggests a deeper adoption of digital assets in traditional investment portfolios.