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Bitcoin ETFs Trends With US Outflows & HK’s Debut : What Traders Must Know

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Bitcoin ETFs Trends With US Trials & Hong Kong's Debut - What Traders Must Know

  • Bitcoin ETFs based in the US face heavy outflows.
  • Australian spot bitcoin ETFs set for ASX listing by 2024.

Last week, there was a notable divergence in Bitcoin Exchange-Traded Funds (ETFs) fortunes, as observed in both the United States and Hong Kong markets.

In the United States, the trend of negative net inflow continues to persist, marking a challenging period for Bitcoin ETFs. Data reveals that the net inflow has plunged to$52 million, extending its downward trajectory over the past four consecutive trading days.

 The outflow from major funds such as Grayscale Bitcoin Trust GBTC and ARK 21Shares Bitcoin ETF ARKB underscores a growing sentiment of caution among investors. Notably, the BlackRock iShares Bitcoin Trust IBIT has remained stagnant with zero flow for the same duration, signaling a period of uncertainty in the market.

Conversely, the launch of Bitcoin ETFs in Hong Kong has injected a fresh wave of optimism into the global cryptocurrency sphere. With an innovative in-kind ETF subscription and redemption mechanism in place, investors now have access to a unique investment avenue that distinguishes itself from its US counterparts. This mechanism allows for the seamless exchange of underlying assets for fund units and vice versa, offering greater flexibility and efficiency in portfolio management.

Spot Bitcoin ETFs Volume, Chart: TheBlock

2024- The Year Of Bitcoin ETFs

The timing of the Hong Kong Bitcoin ETFs’ launch is particularly noteworthy, occurring amidst the backdrop of waning investor confidence in US-based products. Market analysts are quick to highlight the distinct advantages that the Hong Kong ETFs bring to the table, emphasizing the importance of viewing them separately from their US counterparts. As the US market grapples with outflows, the emergence of Hong Kong ETFs offers a glimmer of hope for investors seeking alternative avenues for cryptocurrency investment.

Looking ahead, the global landscape of Bitcoin ETFs is poised for further expansion, with Australia’s ASX stock exchange set to list its first approved batch of spot bitcoin ETFs by the end of 2024. Issuers such as VanEck, BetaShares, and DigitalX have already paved the way by filing applications for such ETFs earlier this year. Australian investors, who have been trading spot bitcoin ETFs since 2022, are poised to benefit from this development, further underscoring the growing mainstream acceptance of cryptocurrency as a legitimate asset class.

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.

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