Ethereum is losing more than 5.5% today after spot ETFs in Hong Kong disappointed the expectations of some investors and did not prove to be a catalyst for growth. Additionally, sentiment on Wall Street remains weak, ahead of tomorrow's Fed meeting and Chairman Powell's speech. After the recent higher-than-forecast inflation data, investors are concerned that dollar strength and rising yields will put additional pressure on risky assets.
- Trading volume of spot funds for Bitcoin and Ethereum in Hong Kong totaled $11 million.
- Some asset managers at China Asset Management, among others, suggest that similar funds will also be established in mainland China, but this is impossible at this point due to regulations
- Bloomberg estimates that after two years of activity, spot funds will have bought up about $1 billion worth of BTC and ETH
- This does not seem to be enough demand, to significantly impact Bitcoin or Ether (the capitalization of both cryptocurrencies is about $1.2 trillion and $360 billion, respectively)
Risk aversion is putting some pressure on spot ETFs in the US, which have accumulated more than $12 billion worth of BTC in a few months. Yesterday, the funds recorded another week session, reducing the value of BTC by about $51 million and the main seller this time was not Grayscale. Inflows to BlackRock and Fidelity are proving to be minimal, although it can be seen as a positive that investors are practically not selling out of them, despite the 20% drop in BTC from ATH. Source: XTB Research, Bloomberg Finance LP
Ethereum breaks through the psychological barrier of $3,000 and thus records nearly 5.5% intraday declines. Source: xStation5
ETH's weakness is also felt by altcoins, which are losing sharply during today's session. Source: xStation5
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