Hong Kong Bitcoin and Ether ETFs Experience Significant Outflow in Single Day

Hong Kong's Bitcoin and Ether exchange-traded funds (ETFs) faced a substantial setback on Monday, May 13, with the largest-ever net outflow since their launch less than two weeks ago.

Bosera, ChinaAMC, and Harvest Global's Bitcoin ETFs witnessed a combined net outflow of $32.7 million, with ChinaAMC's Bitcoin fund experiencing the most significant loss at $15.5 million.

Similarly, Ether ETFs from the same issuers saw joint net outflows of $6.6 million, with Harvest Global and ChinaAMC leading in outflows at $3 million each.

Since their trading launch on April 30, these funds have experienced total outflows of $20.9 million, surpassing the $18.4 million in total inflows recorded by May 10.

Hong Kong BTC and ETH ETF flows since May 2. Source: Farside Investors

This recent outflow trend marks the third consecutive trading day of net outflows, totaling $52.5 million since May 9. Notably, it's the first time Harvest Global's Bitcoin ETF has seen outflows, amounting to $9.8 million.

These developments coincide with Bitcoin's weekend trading below $61,000, believed by many to be a consequence of a post-halving decline. Bitcoin mining rewards halved on April 20, typically leading to price drops as the market adjusts to the new issuance schedule.

Compared to the United States, Hong Kong's crypto ETF market remains relatively smaller, both in terms of funds offered and assets under management. While the US boasts 11 spot Bitcoin ETFs with over $50 billion in assets, Hong Kong's ETFs manage $179.2 million, primarily allocated to Bitcoin ETFs.

The significant outflow experienced by Hong Kong's Bitcoin and Ether ETFs in a single day highlights investor concerns amidst market fluctuations, potentially indicating a lack of confidence in the current market conditions.