In the three weeks since their inception, Bitcoin exchange-traded funds [ETFs] have demonstrated resilience in trading volumes, overcoming recent market downturns. Leading the pack is the ARK 21Shares BTC ETF [ARKB], closely followed by Fidelity’s FBTC. However, the well-established grayscale Bitcoin Trust [GBTC] has witnessed a decline amid the rising fortunes of its counterparts.
The iShares BTC ETF [IBIT] has notably attracted substantial inflows, although the past week has seen a tapering off of such investments. Popular crypto analyst Layergg reported positive trends, stating, “New US ETFs: +170,628 BTC; GBTC Outflow: -132,136 BTC Total BTC net flow: +28,103 BTC. The selling pressure on GBTC is diminishing, and the net flows of BTC ETFs are starting to look good.”
Bitcoin ETFs are emerging as the investment of choice, outshining traditional assets like gold. J.P. Morgan’s recent chart highlights a significant influx into BTC funds coinciding with a simultaneous outflow from gold ETFs. Layergg too emphasized this shift, noting, “Bitcoin vs Gold Bitcoin ETF flows after first 14 trading days: $1.7 billion Gold ETF flows after the first 14 trading days: $1.3 billion. We are seeing a shift in interest from gold ETFs to BTC ETFs on TradFi.”
The trajectory of Bitcoin ETFs mirrors the launch of gold ETFs, suggesting a potential comparable journey for the dominant crypto. Layergg remarked, “To date, BTC ETFs are proceeding in a fractal similar to the launch of gold ETFs. This trend, while not directly linked to the crypto asset, suggests a possibility that BTC could follow a similar trajectory.”
Bitcoin Buzz in Hong Kong
Even in the relatively cautious digital asset landscape of Hong Kong, Harvest Hong Kong, a prominent fund company in China, has recently applied for a BTC spot ETF with the Hong Kong Securities and Futures Commission. This marks a milestone as the first institution in Hong Kong to seek approval for a BTC spot ETF, indicating growing acceptance and interest in cryptocurrency investments.
As Bitcoin ETFs continue to evolve, their impact on traditional financial markets and the broader crypto landscape remains a topic of increasing attention and speculation.