The EU is considering including cryptocurrencies in the 12 trillion euro investment market, which is a major move. The European Securities and Markets Authority (ESMA) is consulting on whether to include crypto assets in investment products. If this plan is passed, it will expand the scope of application of UCITS (EU Transferable Securities Collective Investment Plan), and the UCITS market size is as high as 12 trillion euros. The consultation deadline of ESMA is August 7, and the approval result remains to be seen. DLA Piper lawyer Andrea Pantaleo pointed out that the impact of this move may far exceed that of US ETFs, because many fund sectors may invest part of their liquidity in crypto assets.
From a market perspective, this move may bring wider recognition and acceptance to cryptocurrencies, further promoting their mainstreaming in the financial sector. If cryptocurrencies can enter the mainstream investment market in Europe, it will bring huge liquidity and capital inflows. This is a milestone event for the cryptocurrency industry, which may arouse the interest and participation of more institutional and individual investors, and promote the development and maturity of the market.
According to 13F documents, several institutional investors, including U.S. Bancorp and Rothschild & Co., disclosed their purchases of spot Bitcoin ETFs in the first quarter, totaling approximately $20 million. U.S. Bancorp disclosed more than $15 million in spot Bitcoin ETF investments on May 8, including approximately 87,744 shares of Fidelity's FBTC, valued at approximately $5.4 million, 46,011 shares of Grayscale's GBTC, valued at approximately $2.9 million, and 178,567 shares of BlackRock's IBIT, valued at approximately $7.2 million. Rothschild & Co. disclosed more than $4.2 million in spot Bitcoin ETF investments on May 9, holding 103,600 shares of BlackRock's IBIT, valued at just under $4.2 million, and 1,300 shares of GBTC, valued at approximately $82,121.
In addition, other institutions such as Hightower Advisors, SouthState Bank, Susquehanna International Group, BNP Paribas, Burkett Financial Services and Legacy Wealth Asset Management have also purchased ETFs. In addition, MassMutual continued to invest in Grayscale's Bitcoin Trust (GBTC) on May 9, with an investment of 227 shares, worth approximately $14,340.
Since their inception on April 30, the total assets under management of six Hong Kong spot Bitcoin and Ethereum ETFs have exceeded $317.4 million. This shows that investor demand for cryptocurrency ETFs is gradually increasing. According to data from local cryptocurrency exchange OSL, a total of 2,079.42 Bitcoin and 396.79 Ethereum have flowed into these ETFs.
This situation reflects the growing confidence of investors in the cryptocurrency market and their willingness to participate in this field through traditional investment tools such as ETFs. The launch of ETFs provides investors with a more convenient and safe way to gain exposure to cryptocurrencies, while also bringing more liquidity and capital inflows to the market.
Analysts at JPMorgan Chase pointed out that the recent Wells Notice issued by the SEC to Robinhood Crypto is unlikely to be an obstacle to the final approval of the spot Ethereum ETF. This means that the SEC may be considering establishing a new intermediate category for Ethereum, which is neither classified as a commodity nor as a security. I agree with this view. Because the spot Ethereum ETF is different from the traditional security ETF and is more similar to a form of digital asset. The SEC may be trying to find a regulatory framework suitable for digital assets, which is a positive signal for the entire cryptocurrency industry.
The SEC's notice to trading platform Robinhood suggests that they will not be hindered by the final approval of the Ethereum spot ETF. Although the failure of the Ethereum spot ETF to be approved this month is not surprising, as it is in line with market expectations. However, if the SEC ultimately refuses to approve the Ethereum spot ETF, it may face legal challenges and lose the case. In my opinion, the SEC's attitude is crucial to market confidence. If they give clear legal guidance, it will help the stable development of the cryptocurrency industry and avoid market volatility caused by legal uncertainty.
As of May 9, the Hong Kong Bitcoin Spot ETF held a total of 4,223.50 BTC, an outflow of 90.2 BTC from the previous day, with a total fund management scale of approximately US$268 million.
The U.S. spot Bitcoin ETF had a net inflow of 180 coins yesterday (May 9), worth US$11 million.
BTC: It closed with a small positive line yesterday and is now in a state of shock. The 12-hour MACD is expected to strengthen. Continue to observe. If it breaks through 63,700 and stabilizes effectively, it will strengthen further. In the bull market, just hold the currency.
ETH: Linked to Bitcoin trend.
Copycat: RNDR and WLD in the AI track have already started to take the lead, while some other weak copycats are still in the process of fluctuating and bottoming out, linking up with the trend of Bitcoin, exchanging time for space, and holding coins waiting for the next major upward wave.
Today's hot topics: AI artificial intelligence; Meme.
