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South Korean investors have injected $122 million into BITX, eclipsing traditional favorites like TSMC. Meanwhile, the U.S. has seen the launch of the Hashdex Bitcoin ETF, which offers investors direct exposure to spot Bitcoin.
South Korea's Fervent $122M Investment in BITX Outstrips Major Tech Stocks
In March, South Korean investors showed strong interest in VolatilityShares' 2X Bitcoin Strategy ETF (BITX), investing $122 million in the fund. This surge propelled BITX to the position of the fifth-most purchased foreign security in South Korea, outpacing well-known entities such as Tesla and TSMC, per CoinGape.
BITX has seen a significant increase in demand, with March inflows totaling an impressive $834 million, trailing only industry titans like Fidelity and BlackRock's spot ETFs. This surge in investment has increased BITX's assets under management to a record $1.47 billion. The rebound in Bitcoin prices following a recent market correction has fueled investor interest in BITX and related products.
Experts attribute the significant increase in BITX investment to its potential as a viable alternative to Bitcoin spot ETFs, which are currently unavailable in the South Korean market. BITX's appeal stems from its ability to provide exposure to Bitcoin's performance without requiring direct ownership of the cryptocurrency, making it an accessible investment option for Korean investors seeking exposure to the digital asset space.
Despite its success, experts warn investors about the risks associated with leveraged ETFs such as BITX. These products are designed for short-term trading and are highly volatile, making them unsuitable for long-term investment strategies. Investors should exercise caution and thoroughly assess risk tolerance before investing in leveraged ETFs.
The competition in the leveraged Bitcoin ETF market is heating up, with new offerings like Valkyrie's BTFX joining the fray and filings from ProShares, Direxion, and T-REX. Analysts speculate on the future of BITX and similar products in the face of changing regulatory requirements and market dynamics. While the growing interest in leveraged ETFs creates new opportunities for investors, it also highlights the importance of staying current on regulatory developments.
Hashdex Bitcoin ETF Launches in U.S., Offering Direct Spot Bitcoin Investment
According to a source, the companies announced that Tidal and Hashdex's spot Bitcoin ETF will begin trading in the United States on March 27. Tidal Investments LLC and Hashdex Asset Management have renamed the Hashdex Bitcoin Futures ETF the Hashdex Bitcoin ETF.
Following its successful conversion to hold spot Bitcoin, the Hasdex Bitcoin ETF retained the "DEFI." The companies said this reflects DEFI's completion of converting its investment strategy to allow the Bitcoin ETF to provide spot Bitcoin holdings and track a new benchmark index. DEFI will monitor the Nasdaq Bitcoin Reference Price—Settlement (NQBTCS).
It intends to invest at least 95% of its assets in spot bitcoin, with the remaining 5% allocated to CME-traded bitcoin futures contracts, cash, and cash equivalents.
"Since our founding in 2018, Hashdex has strongly believed that bitcoin is a generational opportunity. This conviction has driven our continued focus on helping investors understand this transformational asset and offering products that allow for regulated participation in the blockchain ecosystem," said Hashdex Co-Founder and CEO Marcelo Sampaio.
Bloomberg senior ETF analyst Eric Balchunas welcomed the Hashdex Bitcoin ETF, which now ranks 11th among Bitcoin ETFs. He believes the Hashdex Bitcoin ETF can attract significant inflows if its fees are competitive, despite competition from BlackRock and Fidelity.
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