According to the latest numbers, it looks like the global Bitcoin funds are draining assets amidst the US ETF boom. Here are the reports on BTC funds and their trajectory.
US BTC ETF boom triggers global BTC funds moves
It’s been just revealed the fact that the surge in demand for spot BTC ETF s in the United States has a very important impact on the longstanding investment products that play a huge role in introducing crypto to the fund world.
Data coming from CoinShares Institutional Ltd. shows the fact that investors are withdrawing a collective $738 million from BTC-related vehicles on exchanges in Germany, Sweden, and Canada.
As you probably know by now, Bitcoin managed to hit new ATHs recently, and at the moment of writing this article, BTC is trading in the red. The king coin is priced at $67,990.
Bitcoin’s ATH had an interesting effect on departing investors who shifted from one BTC product to another. Why? Well, the reason is simple – they are searching for lower management fees, according to Stéphane Ouellette, CEO of FRNT Financial Inc.. This was revealed by a Bloomberg report.
Ouellette noted, “American investors, who had previously managed to buy Bitcoin-ETPs on other exchanges, are highly likely candidates to have repatriated their investment dollars to US ETFs.”
Toronto-based Purpose Investments Inc. launched its Bitcoin ETF on the Toronto Stock Exchange in early 2021, charging a management fee of 1% – four times higher than BlackRock Inc.’s equivalent fund approved in January.
CoinShares data shows that since the beginning of the year, the BlackRock Bitcoin Trust has attracted over $12 billion in inflows, while Purpose Investments has seen $369 million in outflows.
The massive hype that has been built around the BTC ETFs is going to take the king coin straight to the moon, according to expert opinions.
Of course, another catalyst that we should be mentioning is the halving that is waiting just around the corner.