• Dollar Riot
  • Posts
  • Bitcoin ETFs Surge: Fresh Capital Floods Market, BlackRock and Fidelity Lead Inflows, Grayscale Faces Outflows

Bitcoin ETFs Surge: Fresh Capital Floods Market, BlackRock and Fidelity Lead Inflows, Grayscale Faces Outflows

Spot Bitcoin ETFs Witness $418M in Net Inflows Led by Blackrock and Fidelity

US spot Bitcoin exchange-traded funds (ETFs) have recently witnessed a turnaround, with fresh capital pouring in after a stretch of consecutive net outflows. Data from Farside Investors indicates that on March 26, the ten approved spot Bitcoin ETFs collectively received a net inflow of $418 million, spearheaded by funds from BlackRock and Fidelity.

Fidelity's fund experienced its most significant daily influx since March 13, attracting $279.1 million in investments on March 26 alone. The investment giant also bolstered its holdings by adding 4,000 BTC, marking the second consecutive day of inflows surpassing $260 million.

Likewise, BlackRock's fund saw inflows of $162.2 million, albeit lower than earlier in the month when daily averages exceeded $300 million.

While other funds like the Ark 21Shares Bitcoin ETF observed substantial inflows, Grayscale's Bitcoin Trust (GBTC) continued to see outflows, with a daily outflow of $212 million. Despite GBTC's struggles, the combined inflows from competing funds outweighed its outflows.

Since its transition into an ETF on January 11, Grayscale has seen significant outflows totaling 277,393 BTC, valued at around $19.5 billion at current prices.

Bloomberg senior ETF analyst Eric Balchunas highlighted the dominance of Bitcoin ETFs in a chart of the largest 30 asset funds during their initial 50 days of trading. Notably, four Bitcoin ETFs, including BlackRock's IBIT and Fidelity's FBTC, made the list, signaling their exceptional performance.

On March 26, Hashdex, a crypto asset management firm, became the eleventh spot Bitcoin ETF issuer in the US, converting their futures fund into a spot product now trading under the ticker DEFI.

Meanwhile, Bitcoin's price has maintained the $70,000 level amid news of the London Stock Exchange's plans to introduce Exchange-Traded Notes (ETNs) for BTC and ETH in May. Crypto asset trading firm QCP Capital noted a growing interest among asset managers in adding Bitcoin to portfolios as a diversifier, alongside requests for structured products like Accumulators and FCNs. QCP predicts continued momentum for Bitcoin, with the potential to break all-time highs and reach $100,000.

HSBC’s Gold Token Goes Live for Retail Investors in Hong Kong

HSBC, a financial powerhouse, is making waves by tokenizing gold for everyday investors in Hong Kong, proudly declaring itself as the pioneer bank to create a blockchain-based real-world asset tailored for the retail market. The HSBC Gold Token, crafted on the bank’s Orion digital assets platform, is easily accessible through HSBC Online Banking and the HSBC HK Mobile App, according to a press release issued on Wednesday.

This move aligns with a broader trend among banks and financial institutions, who are increasingly leveraging blockchain technology to tokenize various real-world assets (RWA), whether on private ledgers or public networks like Ethereum. This process, known as tokenization, facilitates greater accessibility and efficiency in asset management.

Last November, HSBC had hinted at its plans for a tokenized gold offering as part of its newly established digital asset custody platform, developed in collaboration with Swiss-based crypto custody specialist Metaco.

Maggie Ng, HSBC Hong Kong's head of wealth and personal banking, expressed pride in the HSBC Gold Token, powered by HSBC Orion, emphasizing its status as the first retail product in Hong Kong based on distributed ledger technology, duly authorized by the Securities and Futures Commission. This move underscores HSBC's commitment to innovation and its dedication to providing innovative financial solutions to its clientele.

Ethereum price ranges below $3,700 as debate over its security status reaches US Congress

Several US Congress members, seeking clarity on Ethereum's security status, have directed inquiries to SEC Chair Gary Gensler, amid plans by Prometheum Inc, a special purpose US broker-dealer, to initiate a crypto custody service involving Ether. The SEC's opaque stance on cryptocurrencies, highlighted by ongoing legal disputes with Ripple and Coinbase, has intensified the urgency for regulatory guidance on how to navigate Ethereum's legal classification.

With 48 Congress members signing a letter to Gensler expressing apprehensions about Ethereum's treatment as a security, the debate gains momentum. While the US Commodity Futures Trading Commission (CFTC) previously categorized Ethereum as a commodity, recent remarks by CFTC Chairman Rostin Behnam suggested a departure from this view, indicating that both Bitcoin and Ethereum could be considered securities.

The Ethereum market awaits the SEC's verdict, reflected in the sideways trading of ETH price below $3,700. The uncertainty prompts consolidation within a Fibonacci-defined range, with technical indicators such as the MACD signaling bearish momentum, while the RSI hovers near neutrality.

Ethereum's price trajectory hinges on regulatory clarity and Bitcoin's performance. A breach above $3,575 could nullify the bearish outlook, potentially propelling ETH towards its year-to-date peak above $4,000. Conversely, a dip below $3,000 may precede further downside if Bitcoin displays weakness below $70,000, given their closely intertwined price dynamics.

Stay Frosty

Join the Patreon.com/DollarRiot community