As a researcher with a background in finance and experience in tracking the cryptocurrency market, I find the recent surge in net inflows into U.S. Bitcoin ETFs to be an intriguing development. The significant increase in inflows, totaling over $657 million through May 16, is a clear indication of growing institutional interest and confidence in Bitcoin as an asset class.
Bitcoin ETFs backed by spot Bitcoin in the United States have gained renewed attention due to substantial trading activity reported recently. Specifically, on May 16, a spot Bitcoin ETF recorded approximately $257 million in net investments, while GBTC experienced inflows for the second day in a row.
Bitcoin ETF Inflows Bounce Back This Week
Following significant outflows in the previous week, US Bitcoin exchange-traded funds (ETFs) have experienced substantial inflows, amounting to over $657 million by Thursday. According to on-chain data, these ETFs have purchased approximately 11,188 Bitcoins, which is nearly five times the amount of Bitcoin mined during the same period.
From May 16th, US Bitcoin spot ETFs accumulated a total of $257 million in new investments. Notably, Grayscale’s GBTC fund added $4.6382 million on a single day. Moreover, IBIT from BlackRock and FBTC by Fidelity recorded net inflows of $93.7004 million and $67.0829 million respectively within the specified period.
Over the past week, it has become apparent that some major players in traditional finance have disclosed their investments in Bitcoin ETFs. This indication points to robust institutional interest in Bitcoin ETFs, which is expected to persist in the future. According to Bitwise Asset Management’s data, approximately 700 institutions are projected to pursue exposure to these Bitcoin funds.
Hong Kong Bitcoin ETFs Have Lackluster Performance
As an analyst, I’ve observed a disappointing turnout for Hong Kong’s inaugural cryptocurrency ETFs compared to their US counterparts. Bloomberg’s data reveals that these Bitcoin and Ether ETFs have experienced a decline of approximately $25 million in assets since their debut two weeks ago – a clear indication of investor redemptions.
As the head of trading at market-making and algorithmic trading firm Auros, I’ve observed a relatively subdued reaction to the recent launches in Hong Kong. When I spoke with Bloomberg about this matter, I used the term “lukewarm” to describe the current level of interest and activity.
Initially, the US beat them to the market with cryptocurrencies. Moreover, China’s unclear stance on crypto is leading to apprehension among prospective investors, potentially driving them away from investing in or dealing with that region.
Rebecca Sin, an analyst at Bloomberg Intelligence for Exchange-Traded Funds (ETFs), pointed out some advantages from the recent launches. She mentioned that the total assets have already exceeded $250 million. Looking ahead, Sin expects more players to enter the market as it develops. Her projection is that these funds could amass over $1 billion in assets within the next two years.
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2024-05-17 08:45