Hong Kong’s Crypto ETF Sees Unprecedented $40M Outflows: Impact on Bitcoin (BTC) and Ethereum (ETH)

  • On Monday, May 13, Hong Kong’s spot Bitcoin and Ethereum ETFs experienced a significant outflow of $39.3 million, marking the highest total outflow since their launch on the Hong Kong Stock Exchange on May 2.
  • Spot Bitcoin funds from issuers Bosera, China Asset Management, and Harvest collectively lost $32.7 million, while Ethereum funds from the same issuers lost $6.6 million.
  • Despite the outflow in Hong Kong, Bitcoin ETFs in the United States saw a daily inflow of $66 million on May 13.

Hong Kong’s Bitcoin and Ethereum ETFs see a record outflow of $39.3 million, while US Bitcoin ETFs experience an inflow of $66 million. The article delves into the details of these contrasting trends and their implications for the crypto market.

HK ETF Gains Wiped

As per SoSoValue, the funds saw a net redemption of 519.5 BTC in a single day, with a daily turnover of $4.25 million. The funds now hold 3,560 BTC, valued at an estimated $222.5 million at current prices. This substantial outflow day reverses the net positive total flow balance, which now stands at a negative $20.9 million, effectively wiping out all gains since the launch of these funds.

US Bitcoin ETFs See Inflow

Contrary to the trend in Hong Kong, Bitcoin ETFs in the United States saw a daily inflow of $66 million on May 13. Fidelity’s FBTC fund led the inflow with $38.6 million, followed by Bitwise BITB with $20.3 million. BlackRock registered a zero but has not seen an outflow since May 1. Grayscale’s GBTC also saw a net zero flow for the day as its outflows started to slow down. Since it converted to a spot ETF, the fund has lost approximately 330,650 BTC, worth around $20 billion at current prices.

Crypto Market Outlook

The crypto markets have gained around 2% on the day to reach a total capitalization of $2.40 trillion at the time of writing. Bitcoin reached $63,000 in early trading in Asia on Tuesday morning but has retreated slightly to trade at $62,500. Ethereum prices exhibited a similar pattern, but its gains were not enough to break resistance at $3,000, and ETH remains weak at $2,930. Altcoins were predominantly green at the time of writing with Solana, Dogecoin, Shiba Inu, and Near Protocol outperforming the rest.

Conclusion

The contrasting trends in Bitcoin and Ethereum ETF flows in Hong Kong and the United States highlight the dynamic and volatile nature of the crypto market. While the outflows in Hong Kong are a concern, the inflows in the US provide some optimism. The overall market outlook remains positive, with a total capitalization of $2.40 trillion and several altcoins showing promising performance.

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Gideon Wolf
Gideon Wolfhttps://en.coinotag.com/
GideonWolff is a 27-year-old technical analyst and journalist with extensive experience in the cryptocurrency industry. With a focus on technical analysis and news reporting, GideonWolff provides valuable insights on market trends and potential opportunities for both investors and those interested in the world of cryptocurrency.
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