- Inflows into Australia’s first ETF to directly hold Bitcoin, Monochrome’s IBTC, have remained healthy despite massive falls in crypto and traditional markets, as Aussies look to buy the dip.
- According to Monochrome CEO, Justin Yew, yesterday marked a daily trading volume record for IBIT with the day ending with net inflows to the fund.
- The market drawdown is generally believed to have been caused by the unwinding of Japanese carry trades, which was triggered by the Bank of Japan’s decision to raise interest rates from 0 to 0.25%.
Amid crashing markets, it appears the latest ‘cryptogeddon’ hasn’t lessened Aussie appetites for Bitcoin.
Inflows into the Monochrome Bitcoin ETF (IBTC), the first Australian-based ETF to directly own Bitcoin, have hit record highs over the past few weeks, with the fund’s assets under management growing from 85 BTC to 100 BTC in under two weeks from July 15 to July 28.
Even as the Japanese economy seems to have gone into meltdown over the past few days— dragging down both global stock markets and the crypto market—IBTC yesterday hit a record daily trading volume as Aussie investors look to pile in to buy the dip.
Related: Breaking: Australia’s First Bitcoin ETF Directly Holding BTC Goes Live on CBOE
Monochrome Bitcoin ETF Bucks Trend as Aussies Bag A Bargain
In the past week, the overall crypto market cap has plummeted by around 25% according to data from CoinGecko. But despite this huge drawdown, inflows into Monochrome’s Bitcoin spot ETF have remained strong, continuing a trend over the past few months.
The value of assets under management (AUM) by the Monochrome fund sat at AU$10.64 million on July 31, up over 34% from the July 15 figure of AU$7.93 million.
According to Monochrome’s CEO Justin Yew, yesterday—when the crypto market was in full cryptogeddon mode—was an all-time high volume day for the Bitcoin ETF, with nearly 137,000 units at a total value of AU$1.16 million, being traded.
The Monochrome CEO later commented on his post, saying the day ended with net inflows and congratulating Aussies for buying the dip:
Net in-flow. Good job Australia.
Justin Yew, Monochrome CEO Good Times, Bad Times and Carry Trades
The past week has been tough for both traditional markets and the crypto market, as several factors have combined to create a difficult trading environment. Market watchers have attributed most of the blame for this market drop to the unwinding of the ‘carry trade’ strategy in Japan. This strategy involves traders borrowing Japanese Yen at zero interest rates, converting it to USD and using that to invest in US stocks.
Related: Crypto Market Turmoil: Heavy Losses Across the Board, Analysts Weigh In
Unfortunately, Japan’s central bank decided to lift interest rates from 0% to 0.25% last week. While it’s a relatively small increase, it was enough to cause huge losses for many traders, triggering a sell-off of liquid assets—such as shares and crypto—to cover their mounting losses.
Source:
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