Spot Bitcoin, which has been traded in the USA in recent weeks $102,846.63 There is a billions of dollars of investment flow to stock market investment funds (ETF). The sharp recovery process of crypto currency starting from $ 75,000 and rising up to $ 100,000 plays an important role in accelerating these investments. According to the data, investments in these funds are mostly caused by bold -pasted purchase moves.
A large amount of investment entry to Spot Bitcoin ETFs
In April, a total of 2.97 billion dollars of investment in 11 different Spot Bitcoin ETF was invested. As of the beginning of May, the funds were transferred to 2.64 billion dollars. Thus, the total net investment flow since the establishment of these funds in January 2024 has exceeded $ 41 billion. The data provided by Sosovalue reveals that the interest of investor has increased since the beginning of the year.
In the past, corporate investors used such ETFs to benefit from price differences mainly between markets. One of the most frequently monitored methods was to buy ETF at the same time and benefit from the price difference between the two markets by selling over maturity. This strategy aimed to make a profit without being affected by the fluctuations in terms of price.
Increases in investments and positions of hedge funds
However, the main reason for the recent investments in funds is the expectations of the rise in the price of Bitcoin. This change is supported by trader reports published by the US Commodity Futures Commission (CFTC) every week. According to the latest data, Hedge funds and similar institutions with the aim of risk management reduced their net short positions to 14,139 contracts from 17,141 contracts at the beginning of April.
In other words, investors in the market take direct positions on the possible future rise of price instead of technical strategies with Bitcoin ETFs. If the main motivation of investments in funds was only to benefit from the price differences, the number of short positions would be expected to increase. The observed table shows otherwise.
Expert Reviews and Market Analysis
Market analysts say that these investments are due to open positions. Imran Lakha, Founder of Options Insight, shared his opinion on his blog:
“CFTC data shows that it does not significantly increases the short positions of the funds that process on the basis of the lift, so the entrances to the funds are mostly purchasing transactions.”
These developments indicate that Spot Bitcoin ETFs are increasingly used by more large investors and corporate players. According to the current market data published by Forbes, Bitcoin’s trading price is at the level of $ 102,700 at the time of the news.
The increase in purchases for Bitcoin ETFs in the US market stands out as an important data that shows both the general expectations of the market and the investor behaviors. Market experts say that if the current investment trends continue, the demand for crypto assets may rise rapidly. At the same time, possible changes in the ETF market may lead to new dynamics in crypto money pricing. For investors and market observers, it is recommended that demand and market reactions to ETFs should be carefully monitored.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
