In a significant development for the cryptocurrency market, Hong Kong-based Yong Rong HK Asset Management Ltd has secured its position as the largest holder in the BlackRock iShares Bitcoin ETF (IBIT), according to recent data unveiled by Bloomberg Intelligence analysts on Friday.

Yong Rong HK Asset Management: A Rising Force in Crypto Investments

According to new data released by Bloomberg Intelligence analysts on Friday, Hong Kong-based Yong Rong HK Asset Management Ltd has become the largest holding in the BlackRock iShares Bitcoin ETF (IBIT), as per Coingape.

Bloomberg senior ETF analyst Eric Balchunas disclosed that Hong Kong-based Yong Rong Asset Management purchased $38 million in BlackRock's iShares Bitcoin ETF (IBIT). The investment advisor became the largest holder of IBIT, with more than 12% of disclosed holdings.

"Interesting, given that Hong Kong now has its own ETF. But US ETFs provide the irresistible combination of cheap fees and high volume," said Eric Balchunas.

Yong Rong Asset Management's top four holdings are Nvidia, Meta, Tesla, and the iShares Bitcoin ETF. According to other data sources, the corporation has spent over $45 million to acquire 1,127,561 IBIT units.

Bloomberg analysts also noted that, while Yong Rong has the greatest single ETF investment, another Hong Kong firm, Ovata, has interests in four bitcoin ETFs, totaling $74 million. This makes the corporation the largest buyer of Bitcoin ETF yet. The firm's top three holdings are Fidelity Wise Bitcoin ETF (FBTC), GBTC, and Bitwise Bitcoin ETF (BITB).

Following Wednesday's enormous negative flows of over $550 million, outflows from the U.S. Spot Bitcoin ETF fell to $34 million. The Ark 21Shares Bitcoin ETF experienced the most buying on Thursday.

Potential Shifts in Bitcoin ETF Holdings: Insights from Bloomberg Analyst

According to an intriguing notion put up by James Seyffart, ETF analyst at Bloomberg, a selloff by the same Hong Kong-based investment management business might result in a significant outflow from IBIT.

Furthermore, he anticipated that Yong Rong Asset Management may switch from BlackRock iShares Bitcoin ETF to a Hong Kong-based spot Bitcoin ETF, which could result in outflows. "Potential gains taxes make this strange if true though," he went on to say.

BTC prices recovered by more than $61,000 following a softening labor market and an increase in unemployment to 3.9%, higher than projected at 3.8%. This suggests that the Fed can still cut rates this year, with FED Swaps anticipating two 25-basis-point cuts apiece.

Photo: Microsoft Bing