|
|
The profit effect of Bitcoin ETFs is stimulating more and more public funds to enter the market.
Closing data on February 22nd showed that the Southern Bitcoin ETF, which doubled its performance last year, has once again expanded its gains, with a year-to-date return of 20%. This profit effect has also attracted more public funds to allocate resources to related product lines. Industry insiders predict that top public funds in Hong Kong with subsidiaries may generally launch such products. Overnight market data on February 22nd showed that the spot price of Bitcoin has reached $52,000, breaking the $50,000 mark. The historical high point for Bitcoin was reached in November 2021 at $69,000.
Starting the year with another 20% gain, Bitcoin ETFs are drawing public fund subsidiaries into the mix.
With the continuous strong rise in Bitcoin prices, the Southern Bitcoin ETF continues to expand its gains. The Bitcoin ETF, launched by the subsidiary of Southern Fund, Southern East England in Hong Kong, has also broken the "curse" that "champion funds" and "doubling funds" cannot maintain their leading performance in the following year.
Securities Times reporters noticed that the cumulative return rate of the Southern Bitcoin ETF in 2023 was as high as 1.34 times, making it the performance champion of the entire public fund business line in 2023. As of the beginning of 2024, the Bitcoin ETF introduced by the subsidiary of the public fund company easily broke the curse of the champion, and its cumulative return rate after the opening of the year reached 20% in just two months. This performance has already exceeded the performance of all equity-type funds including QDII. Currently, the best performing equity-type fund has a year-to-date return rate of 14%.
The complexity of directly purchasing Bitcoin, concerns about fund security, and the current strong Bitcoin market have led more and more investors to see the Southern Bitcoin ETF as a tool for entering the Bitcoin market, which has gradually received feedback in terms of capital. Securities Times reporters noticed that on February 9th, the trading volume of the Southern Bitcoin ETF was HK$185 million, the first time the daily turnover of the product exceeded HK$100 million since its listing. On the second trading day after the first time it exceeded HK$100 million, February 14th, the price of the ETF soared by about 9%, significantly expanding its year-to-date cumulative return rate.
Industry insiders predict that the successful layout of Bitcoin ETFs by subsidiaries of Southern Fund may attract more top public funds to develop Bitcoin ETFs. Not long ago, several major foreign-funded mutual funds had already applied for Bitcoin ETF products in the United States. The regulatory authorities in Hong Kong may follow the operation of Bitcoin ETFs in the United States and approve more fund companies to develop related Bitcoin ETFs. Securities Times reporters learned that Jia Shi Fund, a subsidiary in Hong Kong, or the second top public fund to deploy Bitcoin product lines in Hong Kong.
Overseas regulatory easing stimulates the market, does it also endorse a bear market?
After experiencing a bear market, Bitcoin seems to endorse its performance across bear markets to traditional financial institutions and top public funds.
"If Bitcoin had been rising since its inception, most investors would believe it would eventually be worthless. It must prove to the market that it has both bull and bear markets, especially showing its worst state to investors." A Bitcoin practitioner in Shenzhen believes that Bitcoin without a bear market is the most frightening. Now, more and more institutions are launching Bitcoin ETFs precisely because Bitcoin has shown what a bear market looks like, and whether it will suddenly become worthless.
At the current price, the price of Bitcoin has exceeded $50,000, and the latest price is stable around $52,000. In early January 2023, its lowest fell to around $16,000. The sharp drop in Bitcoin at that time was related to the bull-bear conversion caused by fund speculation and the severe attitude of various countries' regulatory authorities towards Bitcoin trading platforms. However, after the sharp decline in Bitcoin, the gradual relaxation of regulation by regulatory authorities, led by the United States, gradually led to a rebound. After Bitcoin began to be regarded as an investment product by US regulatory authorities, this further stimulated its price increase. Especially in January 2024, the issuance of Bitcoin spot ETFs further pushed up its price volatility. On January 11th this year, the U.S. Securities and Exchange Commission formally approved 11 Bitcoin spot ETF applications, including institutions such as BlackRock, which once again pushed up the price of Bitcoin and eventually broke through $50,000.
Traditional funds that were originally invested in stocks and gold began to cover Bitcoin, which has become another factor driving its strong price performance. Bloomberg ETF analyst Eric Balchunas revealed data showing that the inflow scale of BlackRock's Bitcoin spot ETF (IBIT) since 2024 has reached $5.2 billion, while the total inflow amount of 417 ETFs under BlackRock is about $10.4 billion, which means that the inflow scale of Bitcoin spot ETFs accounts for about 50% of the total inflow of the 417 ETFs under BlackRock so far this year.
Is Bitcoin $500,000 or $0, with a huge difference in opinions between European and American institutions
Although Bitcoin has shown what a bear market looks like and endorsed itself to traditional financial institutions, there is still controversy over the price of Bitcoin.
Mathew McDermott, global head of digital assets at Goldman Sachs, is optimistic about the cryptocurrency market in 2024. He predicts that if the Bitcoin spot ETF is approved this year, Bitcoin's development will be strengthened, and liquidity will increase. This move is expected to attract more pension funds, insurance companies, and other institutional investors to participate in the cryptocurrency market. The above-mentioned institutional personnel stated that the approval of the spot cryptocurrency ETF will create institutional-grade products, prompting traditional financial giants to enter the digital asset field. The huge scale of the U.S. pension market, exceeding $56 trillion, indicates a huge potential market space. He further explained that as the scale of enterprises expands and blockchain technology is integrated, business opportunities will be maximized. McDermott emphasized that although the spot cryptocurrency ETF may not immediately have a huge impact, its impact will gradually become apparent. He foresees that with the increase in real-world applications and the promotion of supportive regulations, the blockchain industry will continue to expand, and over the past year, clear policies and frameworks have promoted more institutional participation in cryptocurrencies.
While some analysts on Wall Street in the United States believe that Bitcoin will eventually reach an astonishing $500,000 or even $1 million, European institutional personnel with a more traditional focus on financial products are disdainful. Ulrich Bindseil, |
|
Post time 7-3-2024 10:30:42