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Bitcoin Settles to Highs as Spot ETFs Launch in Australia – Blockchain News, Views, TV and Business
Bitcoin (BTC) ended the week at around $67,800, down 1.1% from the previous week’s closing value of around $68,500. The week was characterized by low daily volatility, with a price fluctuation of less than $4,000 even when analyzing intraday trading levels. Over the past week, BTC Spot ETFs have seen gradual and steady inflows. Over the course of four trading days, cumulative net inflows amounted to approximately $170 million. This marks the third consecutive week of positive flow, signaling a turnaround after five weeks of subdued demand. In total, BTC Spot ETFs have seen 14 consecutive trading days of net inflows, with overall net inflows since launch approaching nearly $14 billion.
Another significant development occurred last week in the BTC Spot ETF landscape. Blackrock Bitcoin ETF (IBIT) now officially holds more BTC than Grayscale ETF (GBTC). GBTC had previously operated as a trust before transitioning to an ETF in January 2024. Both ETFs currently manage over $19 billion in assets, with IBIT holding approximately $19.7 billion and GBTC following closely with approximately $19. 2 billion dollars.
Demonstrating the growing interest and commitment from traditional financial players in the digital asset space, further milestones have recently been achieved. First, the SEC approved Ethereum (ETH) spot ETFs, which are ready to begin trading once the SEC greenlights S-1 filings, after approving 19b-4s in about 10 days does. Both 19b-4s and S-1s must be approved by the SEC for the launch of Spot ETH ETFs.
The 19b-4s filing allows national stock exchanges (e.g., NYSE or Nasdaq) to list new products, such as ETH Spot ETFs. S-1s are the initial registration forms required for new securities offered to the public, which provide detailed information about the company’s operations and products. Market participants expect trading for Spot ETH ETFs to begin in July or August 2024, based on currently available information.
Australia saw the launch of its first BTC Spot ETF on Tuesday 4th. Monochrome Asset Management, the issuer, gained approval for its BTC Spot ETF (IBTC) in April and launched its product on Cboe today Australia, after getting the green light from the Australian regulator.
These recent developments highlight the global demand from traditional financial investors to diversify their portfolios by increasing exposure to digital assets. The approval of BTC Spot ETFs in the US earlier this year led the way, followed by similar product launches for BTC and ETH in Hong Kong. Additionally, the news of the ETH Spot ETF being approved in the US and the BTC Spot ETF trading in Australia further highlights the sector’s momentum.