This year, US spot Bitcoin ETFs have made up 75% of investment inflows into the cryptocurrency. Their combined balance now totals $12.5 billion, and the US share of global inflows into crypto ETFs exceeds 95%.
Image source: farside.co.uk
Interest in ETFs has been so strong that BlackRock's fund has become the fastest-growing fund in history. It has accumulated $15.3 billion over the past three months. Note: The large discrepancy with the funds' total balance is due to the $16.3 billion outflow from Grayscale.
Image source: twitter.com/thomas_fahrer
A similar influx of investment in cryptocurrency is now expected from the emergence of spot ETFs in China. According to an insider from Bloomberg, the Hong Kong SEC may make an affirmative decision in the coming days.
China may be the second-largest economy in the world, but it's also fairly closed off to capital outflow. The stock market is the primary direction for investments. It's been showing negative movement since 2021. At the same time, a combination of factors indicates the potential for an even greater decline due to the crisis in the real estate market.
Image source: investing.com
This explains the incredible rise of ETFs with stocks of gold mining companies in April, with the premium jumping 30% relative to the value of the underlying assets. Fearing new financial turmoil, the Chinese are investing in assets that are least connected to the domestic economy.
Image source: bloomberg.com
For the same reason, they may show significant interest in Bitcoin ETFs. For Chinese residents, ETFs will be the best choice since crypto transactions on the mainland are undesirable and will be completely prohibited for financial organisations starting in 2021.
Image source: StormGain Cryptocurrency Exchange
Whales were among the first to prepare for the emergence of a new catalyst. Over the past 30 days, the number of addresses with a balance of over 1,000 BTC has risen by 2.6% to 2124.
Image source: lookintobitcoin.com
After SEC approval, it will take approximately 1-2 weeks before the new ETFs become available for investment. If there's significant demand from Chinese investors, Bitcoin will quickly conquer new heights in May.
StormGain Analytical Group
(platform for trading, exchanging and storing cryptocurrency)
