Dovey Wan: The Hong Kong entertainment circle is very small; I haven't heard of any organizations getting into trouble.

Dovey Wan, Founding Partner of Primitive Ventures, commented on the rumor that "the market downturn may be due to a Hong Kong hedge fund being liquidated due to IBIT options trading" on X, stating that as someone within the Asian "Hong Kong fund" circle, he has a few opposing views. 1. Regarding the rumor: We are currently conducting due diligence (DD) on Hong Kong's largest Bitcoin options strategy fund. Based on their performance in recent months and our communication with them, there has been absolutely no drama since October 11th. The Hong Kong circle is small; if something really goes wrong, it's impossible to keep it a secret. For example, when Taipingshan, the market maker associated with Hong Kong fund 3AC, collapsed, we knew almost the next day. 2. Regarding fund flows: Long before the advent of in-kind redemption mechanisms, many old-school Asian Bitcoin whales (OG whales) had already one-way swapped their assets to compliant channels like IBIT (at that time, only Galaxy, the market maker, could do this; those who know, know). This is primarily for: easier safekeeping; reduced operational and counterparty risks; easier collateral liquidity within the traditional financial (TradFi) system; and cleaner transfer to other traditional financial assets. 3. Regarding trading habits: Starting in the second half of 2025, Bitcoin trading activity has structurally shifted more towards US stock market trading hours (especially the early morning session when New York opens), reflected in the spot selling pressure on major exchanges. In recent days, Binance has also experienced significant spot selling pressure during these periods, which is actually a chain reaction caused by ETF redemptions. 4. Regarding taxation: Hong Kong has no capital gains tax, so the so-called "tax optimization harvesting" perspective is basically from a US perspective and doesn't apply to us. Furthermore, why would a Bitcoin foundation "collapse" because of writing options? Unless they were naked shorting or engaging in leveraged basis trading, resulting in liquidation due to an unexpected widening of the IBIT and spot price spread. Therefore, this is more likely a traditional finance (TradFi) fund with a cross margin mechanism, rather than a purely "old-school Bitcoin believer" fund.