The surge in interest in Bitcoin ETFs is rapidly growing, particularly with the focus on BlackRock's IBIT inflows, which are remarkably impressive. This trend not only strengthens BlackRock's Authorized Participant (AP) network but also involves Chinese funding firms exploring spot Bitcoin ETFs through their Hong Kong affiliates.

According to data from Farside Investors, IBIT witnessed a significant net inflow of $308.8 million, contributing to a total net inflow of an impressive $14.769 billion. This marks the largest total inflow for IBIT since March 27, 2024, highlighting the substantial demand for Bitcoin through regulated investment channels.

BlackRock is also concentrating on enhancing the liquidity and overall efficiency of its Bitcoin ETF by adding five APs, including major Wall Street banks such as Goldman Sachs, Citigroup, and UBS, as well as Citadel Securities and ABN AMRO. This brings the total number of APs for IBIT to nine, fostering a more competitive environment for the fund's shares.

The positive sentiment surrounding Bitcoin ETFs is evident from four consecutive days of net inflows across multiple funds. Fidelity's FBTC observed a robust $83 million net inflow, contributing significantly to the total net inflow of $7.957 billion. In contrast, Grayscale's GBTC experienced significant outflows, totaling $198.9 million, the highest since April 1, resulting in a total outflow of $15.505 billion.

Interestingly, the interest in Bitcoin ETFs extends beyond the US market, with mainland-oriented equity funds linking to the Bitcoin ETF space through their Hong Kong affiliates. Speculations suggest that several Chinese funding firms have submitted applications to introduce spot Bitcoin ETFs. Among them, the Hong Kong branch of Harvest Fund Management anticipates approval from the Securities & Futures Commission (SFC) and has partnered with HashKey, a certified crypto exchange in Hong Kong, to expand Web3 activities within the asset management sector.

This partnership underscores the growing trend of integrating traditional finance with the crypto ecosystem. With the increasing involvement of major financial institutions and the expansion of APs, the market is evolving, indicating a growing adoption of Bitcoin as a viable cryptocurrency poised for further growth.