% 2.27
BTC Dominance:
% 0.21
Market Cap:
$2.53 T
% 1.90
Fear & Greed:
76 / 100
$ 67.826
BTC Dominance:
% 52.9
Market Cap:
$2.53 T

Record Outflows Hit Hong Kong’s Crypto ETFs

Bitcoin ETFs

ETFs in Hong Kong, which are the cryptocurrency exchanges, had their worst day ever on Monday, May 13, when net outflows amounted to $39 million. This huge change in the financial position of the six crypto ETFs of the region affected all of them, thus their gains made since their recent launch just under two weeks ago were all gone.

Bitcoin ETFs Bear the Brunt

The majority of the outflows were due to Bitcoin ETFs, with Bosera, ChinaAMC, and Harvest Global’s spot Bitcoin funds collectively losing $32. 7 million. ChinaAMC’s Bitcoin fund was the most affected, losing a $15. The outflow of 5 million in a single day was according to the data of Farside Investors. This was the biggest net outflow in the fund’s history.

Ether ETFs Also Hit

The Ether ETFs were also not exempted from the net outflows, with a total of $6 being withdrawn. Both Harvest Global and ChinaAMC Ether funds lost $3 million each.

Cumulative Outflows Outpace Inflows

As of Monday, the total outflows since the ETFs started trading on April 30 have increased to $20. 9 million. This number is in sharp contrast to the $18.4M. The total inflows recorded by Friday, May 10 were 4 million, this shows the investor sentiment has changed a lot.

The losses of Monday are also the third consecutive day of outflows for Hong Kong’s crypto ETFs with $52. 5 million being withdrawn since May 9. Of the most important things, it was the first case when Harvest Global’s Bitcoin ETF had outflows, which amounted to $9 million.

Market Conditions and Post-Halving Slump

The huge withdrawals are in line with the general market trend, where Bitcoin (BTC) traded below $61,000 over the weekend. The analysts say this is the result of the post-halving slump; on April 20, Bitcoin mining rewards were halved, which led to the decrease of the new Bitcoin supply and usually caused the temporary drop in prices as the market was adjusting to the new issuance schedule.

Hong Kong vs. US Crypto ETF Market

The Hong Kong’s crypto ETF market is still quite small in comparison to the United States. The U. S. has 11 place Bitcoin ETFs that are responsible for $50 billion of assets. On the contrary, Hong Kong’s ETFs are managed by the people who collectively have $179. 2 million, with 88. 5% of the funds are to be for Bitcoin ETFs and the other 95% for Ether ETFs, as per SoSoValue.

The recent outflows are the proof of the volatility and the beginning of Hong Kong’s crypto ETF market. With the region’s financial instruments being developed, the investors will be attentively watching these trends and their effects on the whole cryptocurrency world.

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