The newly approved Spot Bitcoin Exchange-Traded Fund (ETF) helped the crypto market to kickstart a bullish sentiment. With approval from the US Securities and Exchange Commission (SEC), the Bitcoin ETFs rose to popularity in the first quarter of 2024. However, as the market moves in the second quarter, analysts suggest a shift towards other trends, and that too within the ETF market.
Crypto ETF is the new cool?
The arrival of spot crypto ETF has definitely helped the Bitcoin price to print green and post massive gains since the beginning of this year. BTC price is now up by 65% in the last 60 days, while, it is up by 52% in the last 90 days. During this period, the biggest digital asset went on to hit a new all time high (ATH) of $73,750 leading the global crypto market.
Reports show that the Nikkei 225 index went on to hit its first record high since 1989. The reason behind this surge is stated to be investors’ interest turning toward single-country ETFs focused on Japan. It added that the inflows into these investment products reached $3.3 billion in the first quarter alone, which is higher than the total for all of 2023.
The WisdomTree Japan Hedged Equity Fund turned out to be the biggest attraction with its appeal to investors seeking protection from currency risk amidst the yen’s decline.
On the other hand, US stock market leadership appears to be stretching beyond mega cap technology stocks. In the first quarter, a notable increase in inflows into sectors like energy, industrials, and real estate came to be seen. This comes in despite the emergence of tech linked ETFs.
What are key players doing?
According to the report, actively managed bond ETFs are gaining traction with other products being in place. This comes in as Federal Reserve policymakers consider interest rate cuts ahead. Meanwhile, Corporate bond ETFs have seen increased investor interest amidst a “risk-on” rotation.
While key players like BlackRock, Vanguard, and State Street continue to dominate the ETF market, newer players are making their mark. The debut of the Fidelity Wise Origin Bitcoin Fund with $10 billion in assets has propelled its overall ETF assets. This signals the potential for newer players to disrupt the market further.
This push has helped Bitcoin to move ahead with anticipated gains, however, a slight fade in ETF interest can be seen among investors. BTC is trading at an average price of $70,026, at the press time.
The newly approved Spot Bitcoin Exchange-Traded Fund (ETF) helped the crypto market to kickstart a bullish sentiment. With approval from the US Securities and Exchange Commission (SEC), the Bitcoin ETFs rose to popularity in the first quarter of 2024. However, as the market moves in the second quarter, analysts suggest a shift towards other trends, […] Read MoreNews, Bitcoin, Crypto, ETF, Regulation, SEC
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