Bracebridge Capital Becomes Largest Bitcoin ETF Holder, Investing $380 Million In All-In Bet

Final week, the US spot Bitcoin ETF market skilled a notable shift in investor sentiment. Optimistic inflows had been reported, breaking a streak of outflows that had continued for nearly a month. The week concluded with a big $116 million optimistic inflows, indicative of rising curiosity within the newly accredited index funds.

Notably, a brand new participant entered the market and made substantial investments, rapidly changing into one of many largest holders of Bitcoin ETFs.

Bracebridge Capital Nets Main ETF Holdings

Bracebridge Capital, a Boston-based hedge fund, reported proudly owning $262 million value of Ark Make investments’s ARKB ETF. Moreover, they emerged as the biggest proprietor of Blackrock’s IBIT with an funding of $81 million. 

Bracebridge Capital additionally holds $20 million of Grayscale’s Bitcoin Belief (GBTC), which skilled detrimental outflows of $103 million throughout the identical interval. Bloomberg ETF professional Eric Balchunas described Bracebridge Capital’s funding as a “wild” transfer, noting the agency’s important acquisitions. 

It’s also value mentioning the rising variety of holders for every ETF, with IBIT boasting 250 holders within the first quarter alone, which is notable for a lately launched product.

Bitcoin ETF Outflows In Hong Kong Persist

In distinction, the Bitcoin ETF market in Hong Kong has been experiencing slower however constant outflows. On Friday, Might 10, 2024, there was an outflow of $6.3 million, adopted by an $18.5 million outflow on Monday, Might 13, 2024. Nonetheless, it needs to be famous that Bosera and Harvest are but to report for Monday, in line with Farside information. 

These outflows come amidst rumors that Bitcoin ETFs listed in Hong Kong may quickly develop into accessible to buyers from mainland China.

As beforehand reported, Richard Byworth, Managing Associate at SyzCapital, sparked hypothesis about integrating Hong Kong-listed Bitcoin ETFs into the Inventory Join system, probably permitting mainland Chinese language buyers to entry these funds. 

Byworth’s remarks on social media highlighted ongoing discussions surrounding this potential integration, which may result in a big inflow of capital from mainland China into the Bitcoin ETF market.

The preliminary efficiency of the ChinaAMC Bitcoin ETF, which gathered $121 million on its first buying and selling day, has fueled optimism about the way forward for Bitcoin ETFs in Hong Kong. 

Samson Mow, a outstanding determine within the trade, expressed bullish sentiments. On the identical time, Brian HoonJong Paik, Co-founder & COO at SmashFi, emphasised the potential socio-economic advantages of mainland Chinese language curiosity in Hong Kong’s Bitcoin ETFs. 

Paik highlighted the huge quantity of Chinese language wealth in actual property, suggesting that different funding alternatives may assist stabilize the socio-economic panorama and mitigate social unrest.

As discussions proceed, market contributors are intently monitoring its potential influence on capital flows and the general adoption of digital asset funds within the area.

The biggest cryptocurrency in the marketplace has rebounded to the $63,000 stage, coupled with a 3% worth enhance within the final 24 hours alone.

Featured picture from Shutterstock, chart from TradingView.com