- Recent developments have occurred regarding Bitcoin and Ethereum ETFs recently launched in Hong Kong.
- Following Bitcoin’s drop below $61,000 on Friday, significant outflows were observed today in spot Bitcoin and Ethereum ETFs listed in Hong Kong.
- According to data from Farside Investors, spot Bitcoin ETFs issued by ChinaAMC, Harvest Global, Bosera and Hashkey saw an outflow of $32.7 million on Monday, significantly higher than previous outflows which usually hovered around $6 million.
Spot Bitcoin and Ethereum ETFs listed in Hong Kong experience significant outflows following Bitcoin’s drop below $61,000. This development marks a first in the history of these funds.
Unprecedented Outflows in Crypto ETFs
Today marked a first in the history of these funds. All six cryptocurrency ETFs, including both Bitcoin (BTC) and Ether (ETH), reported negative flows for the first time since their launch on May 2. Notably, Harvest Global had never previously seen an outflow for its spot Bitcoin fund.
Spot Ethereum ETFs Also See Significant Outflows
Spot Ethereum ETFs also saw significant outflows from the funds, with $6.6 million leaving the funds. This figure is also significantly higher than past numbers. After eight days of trading, investors pulled about $13 million from the six ETFs. This result has been disappointing for Asia-based ETFs, especially when compared to the initial exciting period of their US-listed counterparts.
Hong Kong’s ETF Market in Perspective
Many industry enthusiasts point out that the Hong Kong-based ETF market, with about $50 billion in assets, is relatively small. In contrast, the US ETF market is estimated to have approximately $9 trillion in assets under management. Rumors had spread that mainland Chinese investors were accessing the funds through Stock Connect, which would open the doors to a much larger investor base. However, the Hong Kong exchange denied these rumors early on Monday, stating they were false.
Conclusion
The recent outflows from spot Bitcoin and Ethereum ETFs listed in Hong Kong mark a significant development in the crypto market. While the cause of these outflows is yet to be definitively determined, the event underscores the volatility and unpredictability of the crypto market. Investors and market watchers will be keeping a close eye on these ETFs and the broader crypto market in the coming days and weeks.
