US Bitcoin Spot ETFs Bought 5x Mined BTC This Week

THE US Spot Bitcoin ETF are once again in the spotlight amid the surge in trading volumes reported this week. On Thursday, May 16, the Spot Bitcoin ETF saw net inflows worth $257 million, with GBTC seeing inflows for the second day in a row.

Bitcoin ETF Flows Rebound This Week

After seeing significant outflows last week, US Bitcoin ETFs have rebounded strongly with over $657 million in inflows through Thursday. According to on-chain data, BTC ETFs have recovered a total of 11,188 Bitcoins, almost five times the Bitcoins mined.

As of May 16, US Bitcoin spot ETFs saw a total net inflow of $257 million. Grayscale’s GBTC ETF saw a notable single-day net inflow of $4.6382 million. Additionally, BlackRock’s IBIT ETF saw a net inflow of $93.7004 million, while Fidelity’s FBTC ETF saw a net inflow of $67.0829 million during the same period.

As we saw last week, some of the major players in the traditional finance market have declared their exposure to Bitcoin ETFs. This shows that institutional participation in Bitcoin ETF is strong and should continue. According to data from Bitwise Asset Management, more than 700 institutional investors will likely seek exposure to these Bitcoin funds.

Hong Kong Bitcoin ETFs Underperform

The initial enthusiasm surrounding Hong Kong’s first exchange-traded funds (ETFs) investing directly in cryptocurrency has not held up to its American counterparts. Bloomberg data reveals that the total assets of the six Bitcoin and Ether ETFs declined by about $25 million from the initial $293 million raised when they debuted two weeks ago, indicating investor outflows .

Courtesy: Bloomberg

Le Shi, head of trading at market-making and algorithmic trading firm Auros, described the response to the Hong Kong launches as “lukewarm” so far. Talk to Bloomberghe added:

“First, they were beaten head-on by the United States. Second, there is ongoing uncertainty about China’s crypto intentions, prompting potential investors to exercise caution or even avoid the jurisdiction altogether.

Bloomberg Intelligence ETF analyst Rebecca Sin highlighted some positives from the launches, noting that total assets have already surpassed $250 million. Sin predicts that more issuers will “join the race” as the ecosystem evolves, predicting that these portfolios could accumulate $1 billion within two years.

✓ Share:

Bhushan is passionate about FinTech and has a good flair for understanding financial markets. His interest in economics and finance draws his attention to the new emerging markets of Blockchain technology and cryptocurrencies. He is continually learning and remains motivated by sharing his acquired knowledge. In his free time, he reads thriller novels and sometimes explores his culinary skills.

The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.

Source