ByteTree: ETF flows are more important to Bitcoin than gold
In the Asian market, Bitcoin investors are facing significant volatility, possibly due to automated trading protocols responding to fund flow data of US ETFs holding cryptocurrencies. The daily demand level data for these spot Bitcoin ETFs is disseminated throughout the cryptocurrency market in Asia after the close of trading on the U.S. stock market. On Tuesday, digital assets experienced their largest drop within a month when fund flow data showed investors were withdrawing.
Shiliang Tang, president of Arbelos Markets, said that from an algorithmic trading perspective, robots can essentially automatically capture this data and trade based on it. This flow pattern helps explain why market returns during Asian hours were particularly strong in February and early March but weakened at the end of March. In addition, Charlie Morris, Chief Investment Officer at ByteTree Asset Management wrote in a report that about 5.5% of Bitcoins are held by all ETFs while only 1% for gold. Therefore, ETF flows are more important for Bitcoin than they are for gold.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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