**: China Times.
China Times (www.).chinatimes.net.CN) reporter Hu Jinhua Shanghai reported that after the collapse of bitcoin in late January, the inflow of funds into bitcoin spot ETFs showed a blowout growth, and with the entry of mainstream funds, the enthusiasm of the global cryptocurrency market to invest in bitcoin was once again stimulated.
Previously, Bitcoin** once fell below $40,000, and as of February 8, Bitcoin regained $44,000, up 192%, a new high in the past month. All of this may be related to the continuous inflow of funds into Bitcoin ETFs from overseas markets.
Eric Balchunas, senior analyst at Bloomberg ETFs, released data on February 5 showing that spot Bitcoin ETF inflows have exceeded 31$900 million, second only to the broad-based index** that tracks the S&P 500 and the Vanguard Group's total ** market ETF.
Among the ten approved Bitcoin ETFs**, BlackRock Bitcoin ETF (IBIT) leads the way among Bitcoin ETFs, with net inflows of 1$3.7 billion, the ETF has a market capitalization of $3.2 billion; At the same time, Fidelity Bitcoin** also traded at 25The $100 million performance was among the top performers, ranking eighth among U.S. ETF offerings. BlackRock and Fidelity Bitcoin ETFs continue to climb the rankings, coming in at No. 8 and No. 10, respectively, at the end of January.
Just like the market, before new funds enter the market, there will definitely be a round of deep downward adjustment, and after the market 'pits', new funds can take advantage of the trend. In the cryptocurrency market, every good news about Bitcoin will not necessarily cause it to rise sharply immediately, but will fall first, so that new funds can buy at a low level. On February 7, Sopha Chen, a senior analyst of encrypted digital currencies in the Hong Kong market, pointed out to a reporter from the China Times.
The regular army "entered the market at an accelerated pace."
If before the approval of the Bitcoin ETF, investors in the cryptocurrency market were "stragglers" and "market makers" as the mainstream, then the ten spot ETFs jointly applied to the US SEC for approval by the global asset management giants undoubtedly represent the entry of the regular army.
According to the latest data released by YTarts, BlackRock ranks in the top 0 of ETFs in terms of ETF traffic to date, compared to the 3,109 ETFs currently traded in the United States16%；On the other hand, compared with spot bitcoin, bitcoin ETFs issued this year have continued to be hot, with net inflows of bitcoin ETFs rising slightly for the seventh consecutive trading day, highlighting their attractiveness to investors. A number of data points to the fact that BlackRock's Bitcoin ETF has become one of the top five ETFs in 2024 in terms of inflows 17 days after its launch. In addition to BlackRock, Fidelity's Bitcoin ETF (FBTC) also ranked in the top 10 of all ETF categories in terms of net inflows, with $2.7 billion in inflows.
Cryptocurrency** has accumulated a net inflow of $1.6 billion this year, outperforming many traditional ETFs in the U.S. financial markets. A new report shared by Coinshares on Feb. 7 states:
And the grayscale bitcoin trust**, which has been in a state of outflow, also seems to have begun to "stop the bleeding", with only 1$0.8 billion, the lowest level since the first day of trading. However, BitWise's official data shows that as of February 7, its Bitcoin spot ETF (BitB) held 16,06778 BTC, compared with the previous trading day (15582.).53) added 48525 BTC, with a market value of more than $700 million, and the current circulating share of BitB is 294.7 million.
This year alone, Bitcoin spot ETFs will see inflows of nearly $55 billion over the next five years, pushing Bitcoin's inflows to $100,000. This is a huge positive for the institutionalization of Bitcoin as an asset class. The approval of the ETF will further legalize Bitcoin. Andrew Bond, managing director and senior fintech analyst at Rosenblatt Securities, told the China Times.
Market mindsets vary widely.
At present, the total amount of "gold" of the world's ten bitcoin spot ETFs is about 27 billion US dollars, of which BlackRock and Fidelity occupy the majority, although the market funds are still flowing into bitcoin ETFs, but the flow rate is slowing down.
In the overseas market, many Chinese people will choose to allocate assets to Bitcoin, so investors are not expected to have much investment behavior during this period; Second, a large outflow of grayscale GBTC in the early stage, after the product was converted from a bitcoin trust to a bitcoin ETF, early investors redeemed arbitrage; Third, the listing of Bitcoin ETFs has awakened some of the originally dormant bitcoins and changed the old bitcoin pattern, and some miners hope to take advantage of the psychology of the market soaring before the ETF is approved. In this regard, Wang Heng, an observer of the cryptocurrency industry in Shanghai, said.
It is worth mentioning that there are still some miners in the market who have always stood still and have shown extremely strong bullish beliefs. Blockchain data shows that long-term bitcoin investors still continue to hold bitcoin and are reluctant to sell at the moment, highlighting their confidence in the long-term trend of bitcoin.
The "China Times" reporter learned that with the long-term impact of the approval of the US Bitcoin spot ETF on all kinds of investors, Hong Kong, as an international financial center, is also seeking the opening of bitcoin investment and trading varieties.
Harvest International became the first institution to submit a Bitcoin spot ETF application to the Hong Kong Securities and Futures Commission. On December 22 last year, the Hong Kong Securities and Futures Commission (SFC) issued the Circular on SFC Authorisation** to Invest in Virtual Assets, making it clear that it is ready to accept applications for authorization of virtual asset spot ETFs. Compared with the United States and Hong Kong, Hong Kong is better than the United States in some rules of virtual asset ETFs, according to the "Circular on SFC Authorisation** Investment in Virtual Assets" issued by the Hong Kong Securities and Futures Commission, Bitcoin spot ETFs can be subscribed and redeemed in both physical and cash ways. Sopha Chen said in an interview.
She further pointed out that now Hong Kong has approved the ** type Bitcoin ETF, and there are currently two listed products of CSOP Bitcoin** and Samsung Bitcoin**, whose asset size is relatively small, each **AUM is less than 100 million US dollars. The trustees of these two are HSBC Institutional Trust Services (Asia)**HSBC is the first bank in Hong Kong to allow customers to trade virtual asset ETFs listed on the Hong Kong Stock Exchange, and launched the Virtual Asset Investor Education Centre in the middle of last year.
It is foreseeable that in the future, the global financial market has already begun to act in the competition for Bitcoin ETF investors.
Editor-in-charge: Xu Yunqian Editor-in-chief: Gong Peijia.