The cryptocurrency community has been captivated by the mysterious $436 million stake in BlackRock's iShares Bitcoin Trust (IBIT) held by a shell company named Laurore Ltd., which listed a Hong Kong address and a director named "Zhang Hui" in its SEC filing. The name, described as common as "John Smith" in the West by ProCap's CIO Jeff Park, sparked a week of intense speculation about potential Chinese capital entering the crypto market via U.S. spot bitcoin ETFs.
CoinDesk's investigation revealed over 100 individuals named Zhang Hui listed as company directors in the Hong Kong Company Registry. When visiting the Hong Kong address listed in the filing, the suite was occupied by a different company, Avecamour Advice Ltd. Laurore, which holds the IBIT shares, is not incorporated in Hong Kong. After attempts to contact the firm, a Laurore spokesperson stated the owner prefers to keep a low profile, confirming the owner is also a director of Avecamour, implying Zhang Hui is the beneficial owner. The spokesperson emphasized this was a personal investment conviction and that, as private businesses, further ownership details would not be disclosed.
This mystery unfolds against a stark backdrop: global cryptocurrency exchange-traded fund assets under management (AUM) have plummeted by 50% since October 2024, falling from $195.1 billion to approximately $95.9 billion, according to Artemis data. This $99.2 billion contraction represents one of the most significant drawdowns in digital asset investment history. The decline was driven by a combination of market valuation drops (cryptocurrency prices fell 40-60% from late 2024 peaks), investor redemptions, and product consolidation. Bitcoin-focused ETFs saw the largest initial outflows.
Analysts point to monetary policy tightening, persistent regulatory uncertainty, and changing macroeconomic conditions as key contributing factors. The decline was most severe in North America, with regional variations due to differing regulatory approaches and investor demographics. While the crypto ETF AUM drop appears severe compared to traditional equity or fixed-income ETFs, some analysts note it fits historical patterns of emerging asset classes experiencing volatility during maturation phases.
