Lack of Interest in Australian Bitcoin ETFs
Blamed on Bad Launch Timing and Strong Global Inflows Various forms of Bitcoin-backed exchange-traded funds (ETFs) are now readily available to investors all over the world. However, the funds' popularity varies, with investors in Australia expressing little interest in trading the freshly introduced ETFs.
The dearth of interest in bitcoin ETFs is especially noticeable in Australia, where the first such ETFs were just established in April of this year. According to statistics from crypto researcher Arcane Research, which was released by their analyst Vetle Lunde, ETFs in the nation have only gathered 199 BTC (USD 5.96m) since then.
The lack of interest in this region contrasts sharply with Europe, where local ETPs handle 92,256 BTC (USD 2.76 billion), the most of any region.
Meanwhile, Europe was followed by Canada as the area with the second-highest amount of bitcoin under management, with Canadian ETFs holding 75,333 BTC (USD 2.25 billion) as of June 3, according to the statistics.
The lack of interest in bitcoin ETFs among Australian investors, according to Arcane Research analyst Vetle Lunde, can be accounted in part by the fact that the first ETFs debuted around the same time that LUNA and the Terra ecosystem collapsed.
He went on to say that due to its direct exposure to bitcoin, flows into Australian bitcoin ETFs are anticipated to rise over time and that the ETFS Management-issued EBTC ETF stands to profit the most.
Still no US spot ETF
When looking at the statistics, it's vital to remember that, unlike Europe and Canada, the United States currently lacks a bitcoin spot-based ETF. Instead, investors in the US domestic market must rely on bitcoin futures-backed ETFs, which almost always cost more.
According to Arcane's Lunde, once a spot-based ETF is approved for the US market, Canadian ETFs – particularly the US dollar-hedged ones – are expected to witness withdrawals. European ETFs, on the other hand, are better protected against this danger, according to sources, who project no significant outflows.
Despite the fact that many eager bitcoin investors have been waiting for years, Arcane's analyst believes that things are moving in the right direction for such an ETF to be approved in the United States.
The new crypto bill from two US senators, as well as a regulation change filed by crypto exchange FTX that would allow it to process deals directly without going through middlemen, are among the positive elements that might make a difference.
Inflows are strong throughout the world
Notably, despite the fact that worldwide inflows into bitcoin ETFs have surged in recent months, Australians have shown little interest.
From BTC 188,091 under administration in April to BTC 197,86 in May, the amount of bitcoin under management by ETFs worldwide has already risen to BTC 205,008 three days into June, a gain of BTC 7,152 in just three days.
Sources announced the large inflows on Twitter and the news was rapidly taken up by prominent figures in the crypto world. The inflows show that, despite massive losses over the last two months, investors haven't given up on the world's most popular cryptocurrency, and are instead taking advantage of reduced prices to stockpile more coins.
BTC had dropped by roughly 56% to USD 29,287 as of Saturday at 11:30 IST, from its all-time high. At the same time, the price had dropped by 2.4 percent compared to the last week.