Capula Management Bitcoin ETF Investment Reaches $500 Million

Key Points:

• Capula Management Bitcoin ETF investment announced with allocations to iShares and Fidelity Bitcoin ETFs.
• Market downturn due to falling stock markets, geopolitical concerns, and trading platform issues.
• Ethereum’s decline was linked to the sale of 120,000 wETH by Jump Crypto and large ETH transfers.

One of the biggest European hedge funds, Capula Management, reportedly pledged to invest $500 million in Bitcoin ETFs. That move signalled a strong endorsement of cryptocurrency assets by one of the largest financial players in the world.

Read more: Jersey City Pension Funds Promoted to Get Into Bitcoin ETF Investment 

Capula Management Bitcoin ETF Investment Allotted $500 Million

Capula Management Bitcoin ETF holdings included $252 million of the iShares Bitcoin ETF, consisting of $224 million and another $28 million. The second investment is $212 million in the Fidelity Wise Origin Bitcoin Trust, adding to already huge positions in two of the leading Bitcoin-focused ETFs.

Capula Management is a hedge fund domiciled in London that has expertise in fixed-income and macroeconomic strategies. Capula Management advises on billions of dollars in assets, so it is easily one of the most influential players within the European hedge fund space.

The interest shown by Capula Management Bitcoin ETF investment would likely exert a knock-on effect on other institutional investors considering wading into Bitcoin since this interest can generate more market activity that boosts the price of Bitcoin.

Crypto Falls Can’t Be Divorced from Major Market Moves

In contrast, several factors are expected to stretch the cryptocurrency market to the downside. Geopolitical tensions in the Middle East and shifting monetary policies at both the Bank of Japan and the U.S. Federal Reserve are said to contribute to the current lacklustre performance of the crypto market. Not to mention, massive outages and login problems on major U.S. trading platforms, including Citi, Fidelity, and E-Trade, were another blow to the market.

According to on-chain analysts, the liquidation has weighed on Ethereum‘s decline, most prominently market maker Jump Crypto, with over 120,000 wETH sold. More than 100,000 ETH have been transferred from Jump Trading wallets to centralized exchanges. This makes the market very volatile when considering Mt. Gox’s repayments to creditors and continued ETF dynamics.