Back to main

A New Growth Factor for Bitcoin Emerges

This year, 75% of investment inflows were driven by the introduction of Bitcoin spot ETFs in the United States. Their combined balance now stands at $12.5 billion, with the U.S. accounting for over 95% of the global influx into crypto exchange-traded funds.

More Read

Bitcoin analytics
Spot Cryptocurrency Trading Volumes Surge to Three-Year High
Assessing the Potential for Bitcoin Decline Post-Halving: Analyzing Factors and Risks
Avalanche: A Deviation from Expectations
Reasons Behind the Anticipated Surge to $80,000 for Bitcoin
The Surge in Bitcoin Accumulation: Insights into Market Dynamics and Sentiment Shifts

Interest in ETFs has been so strong that BlackRock’s fund has become the fastest-growing in history, accumulating $15.3 billion in just three months. It’s worth noting that the significant disparity with the total fund balance is due to outflows from Grayscale amounting to $16.3 billion. Similar investment inflows into cryptocurrency are now anticipated with the launch of spot ETFs in China.

According to Bloomberg insiders, the Hong Kong SEC could make a positive decision in the coming days.

China is not only the world’s second-largest economy but also a fairly closed country when it comes to capital outflows. The primary investment direction is the stock market, which has shown negative dynamics since 2021.

Moreover, a combination of factors suggests the potential for even further decline due to the real estate market crisis. This explains the remarkable surge in ETFs with shares of gold mining companies in April, with the premium jumping by 30% compared to the value of underlying assets. Fearing new financial shocks, Chinese investors are turning to assets less connected to the domestic economy. For this reason, they may show significant interest in Bitcoin ETFs.

For citizens of China, ETFs will become the optimal choice as cryptocurrency transactions on the mainland are undesirable for individuals and completely prohibited for financial institutions since 2021.

“Whales” were among the first to prepare for the arrival of the new catalyst: in the last 30 days, the number of addresses with a balance of over 1,000 BTC has increased by 2.6% to 2,124.

After SEC approval, it will take about 1-2 weeks before the new ETFs become available for investment. In the event of significant demand from Chinese investors, Bitcoin is poised to reach new heights as early as May.

Disclaimer

Be forewarned that the content within our website is presented in utmost sincerity and intended for informational purposes only. Any course of action undertaken based on this information is solely at the reader’s discretion, assuming full responsibility for their decisions. This content also does not seek to persuade or advise anyone to invest, as it does not offer financial or trading guidance. We urge you to exercise caution and conduct thorough research, seeking guidance from a skilled financial advisor, before engaging in cryptocurrency or securities investments.

The post A New Growth Factor for Bitcoin Emerges appeared first on CoinFactiva.com.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Read on CoinFactiva Investment Disclaimer