- Crypto asset investment products have been experiencing consecutive outflows for the past four weeks, indicating investor concerns over recent price drops, despite the launch of new Bitcoin ETFs.
- Last week, Bitcoin was the most affected asset with total outflows of $251 million, while Ethereum broke its seven-week outflow streak with an inflow of $30 million.
- Altcoins such as Avalanche, Cardano, and Polkadot also saw minor inflows, and the successful launch of spot Bitcoin and ETH coin ETFs in Hong Kong, which saw inflows of $307 million in their first trading week, was the week’s only bright spot.
Despite the launch of new Bitcoin ETFs, crypto asset investment products have been experiencing consecutive outflows for the past four weeks, indicating investor concerns over recent price drops.
Outflows from Some Crypto Products
Crypto asset investment products continued to see outflows for the fourth consecutive week, with a total outflow of $251 million USD. This occurred despite the successful launch of spot-based ETFs in Hong Kong, which saw inflows of $307 million USD in their first trading week. The outflows were primarily concentrated in the US, where $504 million USD left crypto asset investment products. Outflows were also seen in Canada, Switzerland, and Germany, with respective outflows of $9.6 million USD, $9.8 million USD, and $7.3 million USD.
BTC Outflows Balanced by ETH Coin Inflows
Bitcoin was the main driver of the outflows, with $284 million USD leaving Bitcoin investment products. This was the only crypto asset to see outflows throughout the week. On the other hand, Ethereum broke its seven-week outflow streak with inflows of $30 million USD into Ethereum investment products. A number of altcoins also saw inflows; Avalanche, Cardano, and Polkadot had the most significant inflows with $0.5 million USD, $0.4 million USD, and $0.3 million USD respectively. The outflows from crypto asset investment products are likely due to the recent drop in the Bitcoin price. It is estimated that the average purchase price of the newly issued ETFs in the US is $62,200 per Bitcoin. A drop in the Bitcoin price below 10% of this level may have triggered automatic sell orders from investors.
What’s the Situation with ETFs in Hong Kong?
The successful launch of spot-based Bitcoin and Ethereum ETFs in Hong Kong was critical. According to the data, it provided a bright spot for the crypto asset investment products industry. The ETFs saw an inflow of $307 million USD in their first trading week, indicating strong investor interest in the Hong Kong market. Overall, last week was a mixed one for crypto asset investment products. While outflows continued to dominate, the successful launch of ETFs in Hong Kong drew attention, showing that there is still significant interest in this asset class. It will be interesting to see how the price of Bitcoin and other crypto assets affects investor sentiment in the coming weeks.
Conclusion
Despite the recent outflows, the successful launch of Bitcoin and Ethereum ETFs in Hong Kong and the inflows into Ethereum and several altcoins show that there is still significant interest in the crypto asset class. The coming weeks will be crucial in determining how price fluctuations in Bitcoin and other crypto assets will impact investor sentiment.
