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.
While many are busy scrolling through to find pictures of #TaylorSwift, I’m diving deep into #Bitcoin trends.
Here’s a fresh insight: The rise in new $BTC addresses indicates a growing wave of investor interest. It looks like many have been buying the #BTC dip. pic.twitter.com/9ppaSOrzn4
— Ali (@ali_charts) January 29, 2024
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.
Digital asset investment products saw significant outflows last week, totalling US$500m. The outflows in Grayscale last week totalled US$2.2bn. Newly issued US ETFs saw inflows totalling US$1.8bn last week, and since launch on 11th January 2024 have seen US$5.94bn of inflows.…
— Wu Blockchain (@WuBlockchain) January 29, 2024
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.
On January 26, Harvest Hong Kong, one of China’s largest fund companies, submitted a Bitcoin spot ETF application to the Hong Kong Securities and Futures Commission. This is the first institution in Hong Kong to submit a Bitcoin spot ETF application. https://t.co/UgMfQ6G8xQ
— Wu Blockchain (@WuBlockchain) January 29, 2024
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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Source: https://nulltx.com/bitcoin-sees-recovery-amidst-etf-activity-with-grayscale-and-hong-kong/