Capula Management and Semler Scientific Bet Big on Bitcoin

Capula Management disclosed a substantial purchase amounting to over $464 million in Bitcoin through spot exchange-traded funds (ETFs)

Capula Management, Europe's fourth-largest hedge fund, has acquired a substantial stake in Bitcoin through exchange-traded funds (ETFs), according to a recent 13F filing with the US Securities and Exchange Commission. The filings show that Capula now holds 4,022,346 shares in the Fidelity Wise Origin Bitcoin ETF (FBTC) and 7,419,208 shares in BlackRock's iShares Bitcoin fund (IBIT), for a total holding of about $464 million in the two ETFs.

This move comes as Bitcoin dropped to a five-month low of $49,000, though it quickly rebounded to over $55,700. Despite the price fluctuations, the hedge fund's aggressive acquisition highlights a strong belief in the digital asset's resilience.

According to Bloomberg ETF analyst Eric Balchunas, trading volumes remained high during these market shifts, with around $2.5 billion being exchanged during peak hours. However, he noted that high volumes on down days are often indicative of investor anxiety.

"If you [are a] Bitcoin bull, you actually don't want to see crazy volume today as ETF volume on bad days is a pretty reliable measure of fear,” Balchunas wrote on X (Twitter). This observation was confirmed when Bitcoin ETFs saw a net outflow of 168.44 million on a notably volatile Monday.

Semler Scientific, on the other hand, is ramping up its Bitcoin strategy. In its second-quarter financial report for 2024, the company announced the acquisition of an additional 101 BTC at a cost of $6 million.

The company's total cryptocurrency investment now stands at 929 BTC, with an aggregate cost of $63.0 million. The strategy involves utilizing operational cash flows and proceeds from a $150 million shelf registration statement for continuous purchases.

"We are very encouraged by the strong positive reaction to our recent announcement of a Bitcoin treasury strategy. We continue to firmly believe that Bitcoin is a compelling investment and plan on acquiring additional BTC with our cash from operations, as well as with cash generated from the sale of securities under our $150.0 million shelf registration statement, once effective,” said Eric Semler, Semler Scientific's chairman, regarding their strategy.

These strategic moves by Capula and Semler are part of a broader trend of increasing institutional engagement with cryptocurrencies, indicating a deeper acceptance of digital assets within traditional investment portfolios.

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