Investing.com - Since the beginning of this year, the BTC investment program has been driven by the launch of new spot Bitcoin ETFs, which were approved by the US regulator in January. The move had the potential to infuse new money into the token, causing the token to soar from $45,000 to a new peak of $73,750 in March, Bloomberg writes.
However, already in May, the influx of investors into new BTC ETFs slowed down, the debut of spot Bitcoin ETFs in Hong Kong failed, and the price of Bitcoin generally fell by 20% from its peak in March. This leaves investors asking one important question: what will happen when Bitcoin ETFs go global?
To answer this, we should focus on the situation in the United States, where spot Bitcoin ETFs were recently launched. Even before this launch, there were already more than a dozen other spot Bitcoin ETFs around the world, including in Canada, Germany and Brazil. The only significant difference was the larger size and popularity of new Bitcoin ETFs in the United States than in other countries.
For the month, new US ETFs accounted for 83% of all assets under management in spot Bitcoin ETFs worldwide. The largest was the iShares Bitcoin Trust (NASDAQ: IBIT).
This explains the intense anticipation for the debut of spot Bitcoin ETFs in Hong Kong on April 30. However, there was no loud debut. The total amount of funds invested in BTC was only $10 million, which is significantly lower than the $100 million predicted a few days earlier.
A variety of reasons have been cited for this failure, including the deterioration of the macroeconomic situation, and the fact that the very concept of investing in BTC through an ETF remains primarily an American phenomenon.
— Yahoo materials were used in preparation
