FX168 Financial News (Asia Pacific) Report Thursday (September 12), Bitcoin soared nearly $1,000 before the Asian market midday, hitting a high of $58,466. Analyst Eric Balchunas of Bloomberg stated that State Street plans to enter the Bitcoin ETF market, with net inflows in the industry exceeding $17 billion USD so far this year, and confidence continues to grow.

(Source: FX168)

According to Balchunas, State Street's potential move to enter the Bitcoin ETF market comes after the rapid development of Bitcoin ETFs on Wall Street, despite initial turbulence, new fund inflows have started. Net inflows into US Bitcoin ETFs have exceeded $17.1 billion USD so far this year, recovering from brief outflows during recent market volatility periods.

(Source: Twitter)

After facing some doubt and outflows of funds in the early stages, Bitcoin ETFs are regaining momentum, with outflows reduced to less than 1% of assets under management (AUM) in the past week and month.

Although there were concerns about the performance of these ETFs earlier, analysts believe that these ETFs are now moving towards stability. Balchunas pointed out that Bitcoin ETFs have been doing "very well" in limiting outflows in challenging market conditions, which helps restore investor confidence.

(Source: Twitter)

Bitwise CIO Matt Hougan also pointed out that compared to any other new ETF category in history, the adoption rate of Bitcoin ETFs among investment advisors is the fastest. Despite the market volatility, this rapid adoption highlights the growing interest of financial professionals in Bitcoin ETFs. As history has shown, the inflow of ETFs rarely grows in a straight line, but Bitcoin ETFs appear to be maturing rapidly.

According to reports, State Street, a financial giant known for managing popular assets such as SPDR Gold Trust (GLD), is considering launching a physically-backed Bitcoin ETF. Balchunas commented that this giant may feel the pressure of competition and need to follow companies like Galaxy Digital and Invesco that have already entered the Bitcoin ETF space.

Entering the Bitcoin ETF market is significant for both institutional investors and retail investors as a Wall Street asset management company.

Although State Street has not officially announced this news, market experts believe that it is only a matter of time before the company launches its own Bitcoin ETF product. Considering State Street's pioneering history in ETF products, many people are surprised that the company has not yet launched such a product.

State Street's entry may stimulate more interest and competition in the Bitcoin ETF space, as Bitcoin ETFs become an increasingly important part of the financial ecosystem.

As State Street prepares to enter the cryptocurrency ETF space, Galaxy Digital has made significant progress in the cryptocurrency ETF field. Galaxy Digital recently partnered with State Street to launch three new digital asset ETFs.

(Source: Galaxy)

This includes the Galaxy Digital Asset Ecosystem ETF, the Galaxy Hedged Digital Asset Ecosystem ETF, and the Galaxy Transformative Tech Accelerators ETF, each providing varying degrees of investment opportunities in the digital asset and crypto industry.

CoinGape states that Galaxy's history in the crypto market, combined with the company's financial expertise, makes these ETFs key products. Therefore, their collaboration reflects the commitment of both companies to expanding the range of crypto investment opportunities, as predicted by Bloomberg analysts.