Bracebridge Capital Emerges as Top Bitcoin ETF Holder with $380M Investment: A Bold Move in BTC

• Last week, the US spot Bitcoin ETF market experienced a notable shift in investor sentiment, with positive inflows breaking a month-long streak of outflows.
• Bracebridge Capital, a Boston-based hedge fund, emerged as a significant player, investing heavily in Ark Invest’s ARKB ETF and Blackrock’s IBIT.
• In contrast, the Bitcoin ETF market in Hong Kong has been experiencing consistent outflows, amidst rumors of these ETFs becoming accessible to investors from mainland China.

US Bitcoin ETF market sees a shift in investor sentiment with positive inflows, while Hong Kong’s market experiences outflows amidst rumors of mainland China accessibility.

US Bitcoin ETF Market Sees Positive Inflows

Last week, the US spot Bitcoin ETF market experienced a significant shift in investor sentiment. After almost a month of persistent outflows, the market reported positive inflows, concluding the week with a substantial $116 million. This development is indicative of growing interest in the newly approved index funds. Notably, a new player, Bracebridge Capital, entered the market and made substantial investments, quickly becoming one of the largest holders of Bitcoin ETFs.

Bracebridge Capital Nets Major ETF Holdings

Bracebridge Capital, a Boston-based hedge fund, reported owning $262 million worth of Ark Invest’s ARKB ETF. Additionally, they emerged as the largest owner of Blackrock’s IBIT with an investment of $81 million. Bracebridge Capital also holds $20 million of Grayscale’s Bitcoin Trust (GBTC), which experienced negative outflows of $103 million during the same period. Bloomberg ETF expert Eric Balchunas described Bracebridge Capital’s investment as a “wild” move, noting the firm’s significant acquisitions.

Bitcoin ETF Outflows In Hong Kong Persist

In contrast, the Bitcoin ETF market in Hong Kong has been experiencing slower but consistent outflows. On Friday, May 10, 2024, there was an outflow of $6.3 million, followed by an $18.5 million outflow on Monday, May 13, 2024. However, it should be noted that Bosera and Harvest are yet to report for Monday, according to Farside data. These outflows come amidst rumors that Bitcoin ETFs listed in Hong Kong could soon become accessible to investors from mainland China.

Conclusion

The US Bitcoin ETF market has seen a positive shift in investor sentiment, with new players like Bracebridge Capital making substantial investments. On the other hand, the Hong Kong market is experiencing consistent outflows, but the potential for mainland Chinese investors to access these funds could significantly impact the market. As the situation continues to develop, market participants will be closely monitoring the potential impact on capital flows and the overall adoption of digital asset funds in the region.