Headline: Offshore vehicles may be letting Chinese money into U.S. spot-Bitcoin ETFs — even as institutions pare back exposure Chinese investors could be finding backdoors into the world’s largest crypto market, according to recent U.S. regulator filings and market analysis — a development that comes as institutional Bitcoin allocations are shrinking sharply. What the filings show A fresh 13F filing — the quarterly disclosure required by the SEC from institutional investment managers — revealed new entrants to BlackRock’s IBIT spot-Bitcoin ETF. One name stood out: Laurore Ltd., listed as controlling roughly $436 million worth of Bitcoin. The entity leaves little public trail, prompting questions about who is actually behind the stake. Bitwise advisor Jeff Park flagged the connection to Chinese capital, pointing to the filer name “Zhang Hui,” which he described as a common Chinese name that can obscure identity. Park also characterized Laurore as a classic offshore wrapper (likely Cayman or BVI), a structure often used to give investors access to U.S. markets while avoiding direct domestic exposure. “This could be an early sign of institutional Chinese capital entering Bitcoin,” Park said, noting the name Laurore likely alludes to the French “l’aurore,” or “the dawn.” How big is this in context? U.S. institutional interest in spot Bitcoin surged after the approval of U.S. spot-Bitcoin ETFs in January 2024. Institutional spot holdings now total a reported 682,830 BTC, valued at about $54.49 billion. By comparison, Hong Kong’s own spot-Bitcoin ETFs lag far behind: SoSoValue reports total NAV across Hong Kong spot ETFs of 3,870 BTC (about $264.9 million), split among ChinaAMC, Bosera HashKey and Harvest in that order. If Park’s read is correct, Laurore’s $436 million IBIT position dwarfs Hong Kong’s ETF market: the HK ETFs combined equal roughly 61% of Laurore’s stake, but represent less than 0.5% of the broader $54.49 billion held in U.S. institutional spot ETFs. Bigger picture: institutions are pulling back Despite past inflows, U.S. institutional assets under management in spot Bitcoin have plunged from $163.27 billion at the October 2025 peak to about $54.49 billion today — a 66.6% collapse. Bitcoin’s market price itself has fallen 45.79% from its all-time high, meaning institutional AUM has contracted an extra ~20.8% beyond the price move. That gap suggests institutions are liquidating positions faster than market declines alone would explain. Market dynamics and risk outlook The sentiment picture remains bearish. Short- and long-term holders, especially large whales, have been net sellers. Recent AMBCrypto analysis finds whales dominate spot trading volumes and a whale-to-exchange ratio that signals continued liquidation pressure. Until that selling abates and sentiment normalizes across market participants, Bitcoin faces the risk of further sizeable drawdowns that could weigh on its recovery path. Takeaway Recent filings hint that offshore structures may be enabling Chinese capital to access U.S. spot-Bitcoin exposure, even as institutional participation overall has contracted sharply. The net result: pockets of new demand may exist alongside broad, risk-avoidant selling — a dynamic that could keep volatility high. Disclaimer: This article is informational and not investment advice. Trading or investing in cryptocurrencies carries significant risk; readers should do their own research before making decisions. Read more AI-generated news on: undefined/news

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