Bitrabo Editorial
Recent shifts in the US spot Bitcoin ETF market showed a positive turn last week with inflows totaling $116 million after a month-long period of outflows. This increase indicates a growing interest in the newly approved index funds.
A new major player entered the market, making substantial investments and quickly becoming one of the largest holders of Bitcoin ETFs.
Bracebridge Capital’s Significant ETF Holdings
Bracebridge Capital, a hedge fund based in Boston, revealed holdings of $262 million in Ark Invest’s ARKB ETF and became the leading investor in Blackrock’s IBIT with an investment of $81 million.
Additionally, Bracebridge Capital holds $20 million in Grayscale’s Bitcoin Trust (GBTC), despite GBTC experiencing outflows of $103 million during the same period. Bloomberg’s ETF expert Eric Balchunas described Bracebridge Capital’s investments as substantial and noteworthy.
A notable growth in the number of holders was observed for each ETF, with IBIT accumulating 250 holders in the first quarter of its launch.
Bitcoin ETF Outflows Continue in Hong Kong
Contrastingly, Hong Kong’s Bitcoin ETF market has been experiencing consistent outflows. Recent data showed outflows of $6.3 million on Friday, May 10, 2024, and $18.5 million on Monday, May 13, 2024. Bosera and Harvest are yet to report for Monday, highlighting the ongoing outflow trend in Hong Kong.
Rumors circulate about the potential accessibility of Bitcoin ETFs listed in Hong Kong to investors from mainland China, which could impact capital flows significantly.
Richard Byworth from SyzCapital sparked discussions about integrating Hong Kong-listed Bitcoin ETFs into the Stock Connect system, potentially attracting mainland Chinese investors into the market.
The performance of the ChinaAMC Bitcoin ETF, which attracted $121 million on its first trading day, instilled optimism about the future of Bitcoin ETFs in Hong Kong.
Industry figures like Samson Mow expressed positive sentiments, while Brian HoonJong Paik from SmashFi highlighted the socio-economic benefits of Chinese interest in Hong Kong’s Bitcoin ETFs.
As talks continue, market participants are keenly observing the potential impact on capital flows and the adoption of digital asset funds in the region.
The leading cryptocurrency has surged to $63,000, with a 3% price increase in the past 24 hours.
Images sourced from various platforms.