Bitcoin ETF Holder Bracebridge Capital Invests $380 Million All-In

Investor sentiment on the US spot Bitcoin ETF market underwent a significant transition last week. Positive inflows were documented, which marked the end of an almost month-long sequence of outflows

A substantial inflow of $116 million at the end of the week signifies an increase in interest in the recently authorized index funds. Significantly, a novice participant entered the market and promptly emerged as one of the most substantial Bitcoin ETF holders through significant investments.

Bracebridge Capital Acquires Significant ETF Holdings

According to its financial statements, the Boston hedge fund Bracebridge Capital disclosed holding ARKB ETFs worth $262 million. Further, with a $81 million investment, they became the most significant proprietors of Blackrock’s IBIT.

Additionally, $20 million is held by Bracebridge Capital in Grayscale’s Bitcoin Trust (GBTC), which incurred $103 million in negative outflows during the same period. Bracebridge Capital’s investment was characterized as a “wild” move by Bloomberg ETF expert Eric Balchunas, who also mentioned the firm’s substantial acquisitions.

Additionally, the increasing number of holders for each ETF is noteworthy; in the first quarter alone, IBIT amassed 250 holders, which is exceptional for a newly introduced product.

Hong Kong Bitcoin ETF Outflows Continue

On the contrary, outflows from the Bitcoin ETF market in Hong Kong have been gradual but consistent. A withdrawal of $6.3 million occurred on Friday, May 10, 2024, which was succeeded by a withdrawal of $18.5 million on Monday, May 13, 2024. It is worth noting, however, that Bosera and Harvest still need to submit their reports for Monday, per Farside’s data.

As previously documented, SyzCapital Managing Partner Richard Byworth incited conjecture regarding the potential integration of Bitcoin ETFs listed in Hong Kong with the Stock Connect system. This integration could grant mainland Chinese investors access to these funds.

Constantly debated on social media, this prospective integration could result in a substantial influx of capital from mainland China into the Bitcoin ETF market, as evidenced by Byworth’s comments.

Optimism has been generated regarding the future of Bitcoin ETFs in Hong Kong after the ChinaAMC Bitcoin ETF amassed $121 million on its first trading day.

Samson Mow, a notable individual within the sector, articulated optimistic views. Simultaneously, SmashFi’s Co-founder and Chief Operating Officer, Brian HoonJong Paik, highlighted the potential socioeconomic advantages of mainland Chinese interest in Hong Kong’s Bitcoin ETFs.

Paik emphasized the substantial Chinese affluence in the real estate sector, positing that alternative investment prospects might contribute to alleviating social unrest and establishing a more stable socioeconomic environment.

Market participants diligently observe the ongoing discussions regarding the potential ramifications of this development on capital flows and the broader acceptance of digital asset funds in the area.

The market-dominant cryptocurrency has recouped to $63,000, representing a 3% increase in value over the past twenty-four hours.