Cryptocurrency markets appeared calm heading into the weekend after a tumultuous week that tested how institutional investors new to cryptocurrency trading cope with the huge swings that have become commonplace for seasoned digital currency investors.
The sell-off in Bitcoin and Ethereum, which began earlier this week, wiped out $367 billion in market value just as Japanese markets tumbled. But it turns out these novice cryptocurrency traders were buying the dip.
Spot Ethereum ETFs are collectively bullish Net inflow of approximately US$120 million This week, most traders bought on Monday and Tuesday, when the world’s second-largest cryptocurrency fell 42% from its March price high of over $4,000.
Although the net flow is Spot Bitcoin ETF Since Monday, data from cryptocurrency analytics firm CoinGlass shows that demand began to accelerate again in mid-week, with spot funds increasing by more than $245 million on Wednesday and Thursday.
Bitcoin and Ethereum, 1 month
On the same day that hundreds of millions of dollars began flowing into spot Bitcoin ETFs, Morgan Stanley gave its 15,000 financial advisors the green light to begin marketing them to clients with net worth over $1.5 million. BlackRock and Fidelity.
The bank is one of the largest banks in the world biggest Wealth management firms were the first among Wall Street giants to take this step. Until now, wealth managers have only facilitated transactions if clients specifically requested exposure to these new spot cryptocurrency funds.
Morgan Stanley’s Assets under management reach US$1.5 trillionThe bank disclosed in a May 13 filing that it holds about $270 million in spot Bitcoin ETFs. The next filing deadline on Wednesday will provide an update on how much exposure banks and hedge funds currently have to these spot crypto products.
It is expected that other banks and asset managers that have been conducting internal due diligence on spot crypto ETFs may feel the pressure and soon follow Morgan Stanley’s lead.
Compared with the spot Bitcoin ETF launched in January, the spot ether ETF, launched less than three weeks ago, has seen relatively tepid flows. Bitcoin funds manage a total of $54.3 billion in assets, while spot Ethereum funds manage $7.25 billion.
Keep pace with US stocks
Cryptocurrency markets have traded in tandem with U.S. stocks for much of the week.
Since Monday, the market capitalization of all coins has climbed back hundreds of billions of dollars and now stands at over $2.1 trillion.
Bitcoin hit an intraday high of nearly $63,000 on Friday, with Ethereum earlier trading above $2,700.
more than $100 million short Bitcoin Liquidations over the past 24 hours have helped support Bitcoin’s gains.
Although Bitcoin and Ethereum prices are well above Monday’s intraday lows, both assets have still fallen over the past seven days, with Ethereum on track for its worst week in nearly two years.
A similar situation exists for some cryptocurrency-related stocks. Coin library, micro strategyand Bitcoin miners Anti-riot platform The stock fell for a third straight week.
Cryptocurrency price action this week revealed the extent to which digital assets continue to track U.S. stocks and how they react to the same macro triggers.
The unwinding of yen carry trades earlier this week added to turmoil in global markets, and on Thursday new jobless claims data came in below expectations, helping to ease recession fears. The S&P 500 had its best day in nearly two years on Thursday, and the cryptocurrency market also made a comeback.
It also helps that the regulatory winds appear to be shifting.
Another U.S. judge has sided with the cryptocurrency industry in its legal battle with the Securities and Exchange Commission.
District Judge Analisa Torres ordered Ripple to pay a $125 million civil penalty, far less than the $2 billion sought by the SEC. Ripple’s XRP token surged 22% on Thursday on the news.
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