Two giant Chinese funds want to launch Spot Bitcoin ETFs in Hong Kong. Remarkably, this news comes at a time when interest in the American Spot Bitcoin ETFs appears to be cooling off somewhat. This would involve Harvest Fund and China Souther Fund, both of which manage hundreds of billions of dollars in capital.

Good for bitcoin

In principle, this is a good development for bitcoin. It seems that China wants to try in this way to prevent America from becoming too dominant in the field of bitcoin.

Although the question remains whether they are not already too late. After all, BlackRock and the other big boys have already collected tens of billions of dollars worth of bitcoin.

This news therefore coincides with the moment when CoinShares reports that there are “signals” that the ETF hype is starting to decrease.

Digital Asset Investment Products Inflow.

Last week, the Spot Bitcoin ETF raised ‘only’ $646 million in capital. That’s a decrease of $862 million from two weeks ago.

Short dip, but no misery yet

Despite this short-term dip in inflows, bitcoin is not yet in the clear. Last week, total inflows for 2024 ended at $13.81 billion. If Bitcoin can achieve that every year, it would be a fantastic result.

Now we are only 1/4 of the way through the year. So a lot can still happen in that regard. After the extreme increases of Q1 2024, it is not surprising that Bitcoin needs to take a breath and that the price increases take a break.

But it would also be an exaggeration to say that, because the bitcoin price is still clocking in at a sturdy $71,000 and that has been different in recent years since reaching the all-time high in November 2021.

It may be somewhat disappointing that the continuous price explosions have come to an end, but we should not exaggerate it of course.


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