Hong Kong’s Cryptocurrency Exchange-Traded Funds Witness Significant Outflows
Hong Kong’s Bitcoin (BTC) and Ether (ETH) exchange-traded funds (ETFs) have experienced a substantial net outflow on Monday, May 13, effectively erasing all the gains they had made since their launch less than two weeks ago.
According to data from Farside Investors, the spot Bitcoin ETF funds from Bosera, ChinaAMC, and Harvest Global saw a combined net outflow of $32.7 million, with ChinaAMC’s Bitcoin fund recording the largest loss of $15.5 million in outflows.
Simultaneously, the spot Ether ETFs from the same issuers witnessed a total joint net outflow of $6.6 million, with Harvest Global and ChinaAMC each experiencing $3 million in outflows.
Since their trading launch on April 30, the cumulative outflows from all the funds have reached $20.9 million, surpassing the $18.4 million in total inflows recorded as of Friday, May 10.
Hong Kong BTC and ETH ETF flows since May 2. Source: Farside Investors
The outflows on Monday mark the third consecutive trading day where Hong Kong’s crypto ETFs have posted net outflows, with a total of $52.5 million being withdrawn from the funds since May 9. This also marks the first time Harvest Global’s Bitcoin ETF has seen outflows, which totaled $9.8 million.
The recent market conditions may have contributed to the outflows, as Bitcoin traded below $61,000 over the weekend, which many believe is part of a post-halving slump. Bitcoin’s mining rewards were cut by 50% on April 20, a scarcity mechanism coded into the blockchain that typically leads to a decline in Bitcoin’s price in the weeks following the event as the market adjusts to the new issuance schedule.
Compared to the United States, the crypto ETF market in Hong Kong is significantly smaller in both the number of funds offered and the assets under management. The United States has 11 spot Bitcoin ETFs with over $50 billion in assets under management, while Hong Kong’s ETFs have a total of $179.2 million, with Bitcoin ETFs accounting for 88.5% of the market and the remaining space left for Ether ETFs.