Last week, the US spot Bitcoin ETF market saw a notable shift in investor sentiment. Positive inflows were reported, breaking a series of outflows that had lasted for about a month. The week concluded with significant positive inflows of $116 million, demonstrating the growing interest in newly adopted index funds.
It is worth noting that a new player entered the market, made significant investments, and quickly became one of the players The largest owners Of Bitcoin ETFs.
Bracebridge Capital Nets is a major holding of ETFs
Bracebridge Capital, a Boston-based hedge fund, reported that it owns $262 million worth of Ark Invest's ARKB ETF. Additionally, they emerged as the largest holder of Blackrock's IBIT with an investment of $81 million.
Bracebridge Capital also has $20 million Grayscale Bitcoin Trust (GBTC), which witnessed negative outflows of $103 million during the same period. Bloomberg ETFs Expert Eric Balchunas described Bracebridge Capital's investment is seen as a “wild” move, noting the company's significant acquisitions.
Also worth noting is the growing number of holders of each ETF, with IBIT being proud 250 holders In the first quarter alone, which is notable for a recently launched product.
Bitcoin ETF inflows continue in Hong Kong
In contrast, Hong Kong's Bitcoin ETF market has seen slower but steady outflows. On Friday, May 10, 2024, there was an outflow of $6.3 million, followed by an outflow of $18.5 million on Monday, May 13, 2024. However, it should be noted that Bosera and Harvest have not yet filed their reports on Monday, according to Farside. Data.
These outflows come amid rumors that Hong Kong-listed Bitcoin ETFs may soon become more accessible to investors from mainland China.
As previously mentionedRichard Byworth, managing partner at SyzCapital, has raised speculation about Hong Kong-listed Bitcoin ETFs being integrated into the Stock Connect system, which could allow mainland Chinese investors to access these funds.
Byworth's statements on social media highlighted ongoing discussions about this potential integration, which could lead to a significant influx of capital from mainland China into the Bitcoin ETF market.
Initial performance of the ChinaAMC Bitcoin ETF, which raised $121 million on its site First trading daysparking optimism about the future of Bitcoin ETFs in Hong Kong.
Samson Mu, a prominent figure in the industry, expressed optimistic sentiments. Meanwhile, Brian Hongong Paik, co-founder and COO of SmashFi, emphasized the potential social and economic benefits of mainland Chinese interest in Bitcoin ETFs in Hong Kong.
Paik highlighted the vast amount of Chinese wealth in real estate, noting that alternative investment opportunities can help stabilize the social and economic landscape and mitigate social unrest.
As discussions continue, market participants are closely monitoring its potential impact on capital flows and the overall adoption of digital asset funds in the region.
The largest cryptocurrency on the market rebounded to the $63,000 level, along with a 3% price increase in the past 24 hours alone.
Featured image from Shutterstock, chart from TradingView.com