Crypto News

Bitcoin Sees Recovery Amidst ETF Activity With Grayscale And Hong Kong

Bitcoin commenced January on a strong note, breaching $48,900 following the introduction of U.S.-based spot exchange-traded funds (ETFs) on January 11. 

However, profit-taking among investors in Grayscale Bitcoin Trust (GBTC) led to downward pressure, with prices dipping to around $38,500 last week.

As the new week unfolds, Bitcoin has shown signs of recovery, trading slightly above $42,000. Analyst Ali notes a surge in new BTC addresses, indicating growing investor interest. 

The uptick in active BTC addresses, surpassing 1 million, suggests that many investors seized the opportunity to buy the dip.

Last week witnessed significant withdrawals totaling US$500 million from digital asset investment products. 

Grayscale alone experienced withdrawals of US$2.2 billion, while recently issued U.S. ETFs received inflows of US$1.8 billion. Since their inception on January 11, 2024, these ETFs have amassed total inflows of US$5.94 billion.

Harvest Hong Kong Applied To Launch A Bitcoin Spot ETF

In a notable development, Harvest Hong Kong, one of China’s major fund companies, applied to the Hong Kong Securities and Futures Commission on January 26 to launch a Bitcoin spot ETF.

This marks the first such application in Hong Kong, signaling growing interest and acceptance of Bitcoin investment vehicles in the region.

The evolving landscape of ETFs and investment products reflects a maturing market for cryptocurrencies, with institutional and retail investors alike showing increasing interest in Bitcoin and related assets. 

As regulatory frameworks adapt to accommodate these developments, the cryptocurrency market is poised for further growth and adoption in the coming months.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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