Bracebridge Capital, a Boston-based hedge fund, has invested $380 million in Bitcoin ETFs, becoming the largest Bitcoin ETF holder .This move marks a significant shift in investor sentiment, as the US spot Bitcoin ETF market experienced positive inflows last week after a month of outflows.

Bracebridge Capital's investment includes $262 million in Ark Invest's ARKB ETF, $81 million in Blackrock's IBIT and $20 million in Grayscale's Bitcoin Trust (GBTC). The US market has seen growth, but the Bitcoin ETF market in Hong Kong continues to experience outflows, with $6.3 million and $18.5 million outflows on May 10 and 13, respectively.

However, there are rumors that Bitcoin ETFs listed in Hong Kong may soon become accessible to investors from mainland China, which could lead to a significant influx of capital into the market. The initial performance of the ChinaAMC Bitcoin ETF, which raised $121 million on its first trading day, has fueled optimism about the future of Bitcoin ETFs in Hong Kong.

Industry experts believe that alternative investment opportunities could help stabilize the socio-economic landscape and mitigate social unrest. The largest cryptocurrency on the market has rebounded to the $63,000 level, with a 3% price increase in the last 24 hours.

The Hong Kong Bitcoin and Ethereum exchange-traded funds (ETFs) saw a huge exodus on Monday, May 13, with net outflows totaling $39 million . This single-day outflow erased all gains accumulated since their launch on April 30. All six of Hong Kong's Bitcoin and Ether ETFs experienced significant bleeding, with Bosera, ChinaAMC and Harvest Global taking the brunt of the impact. Spot Bitcoin ETFs from these issuers suffered a combined net outflow of $32.7 million, with ChinaAMC's Bitcoin fund bearing the heaviest loss at $15.5 million. Spot Ether ETFs faced a similar fate, with their net outflows reaching $6.6 million.

Akin to their BTC counterparts, Harvest Global and ChinaAMC emerged as the leaders in outflows in the Ether category, each witnessing withdrawals of roughly $3 million. The staggering outflows on Monday marked the third consecutive trading day of net losses for Hong Kong's crypto ETFs. So far, a total of $52.5 million has been drained from the funds since May 9.