**Capula Management Bets Big on Bitcoin ETFs**

Capula Management, Europe's fourth-largest hedge fund, has made a bold move by investing nearly $500 million in Bitcoin (BTC) exchange-traded funds (ETFs). Public disclosures from August 5 reveal that the UK-based hedge fund, managing over $30 billion in assets, holds significant shares in Fidelity Wise Origin Bitcoin Fund (FBTC) and BlackRock’s iShares Bitcoin Trust (IBIT).

Despite a market downturn in July leading to $175 million in net outflows from BTC ETFs, Capula's investment underscores the growing appeal of Bitcoin ETFs among institutional investors. Other hedge funds, like Millennium Management, also report substantial BTC ETF holdings, highlighting the increasing mainstream acceptance of crypto assets.

Bitcoin ETFs have attracted over $50 billion in net inflows since their January debut, with Ether (ETH) ETFs following suit in June, now commanding around $8 billion in assets. The ETF structure, offering low fees and robust protections, is making crypto more accessible to mainstream investors.

In the US, ETFs represent a $9 trillion market, and major players like Morgan Stanley are starting to recommend Bitcoin to clients. On August 5, BTC ETFs saw record trading volumes, with over $1 billion worth of shares traded in minutes. However, market volatility remains a concern for significant investors, as noted by Markus Thielen of 10x Research.