Hong Kong Crypto ETF Outflows Grow to $40 Million

On Monday, May 13, Hong Kong Bitcoin and Ethereum ETFs recorded a total outflow of $39.3 million, according to preliminary data from Farside Investors.

It is the highest total outflow of institutional investment products since they were launched on the Hong Kong Stock Exchange on May 2.

Local Bitcoin funds from issuers Bosera, China Asset Management and Harvest collectively lost $32.7 million, while Ethereum funds from all three issuers lost $6.6 million.

HK ETF gains were wiped out

According to SoSoValue, the funds had a net redemption of 519.5 BTC in a single day and the daily turnover was $4.25 million. There are now 3,560 BTC in the funds for an estimated value of $222.5 million at current prices.

The big exit day reverses the net balance of the total positive flow, which is now a negative $20.9 million, wiping out all gains since launch.

Things looked brighter in the US pond, where Bitcoin ETFs saw a daily inflow of $66 million on May 13.

Flows in both directions have now settled, but Monday’s entry reverses the trend of the past two trading days, which saw $96 million flow out of commodities.

Fidelity’s FBTC fund led the pack with $38.6 million, followed by Bitwise BITB, which had $20.3 million in inflows. BlackRock posted a zero, but hasn’t seen an exit since May 1.

Bitcoin ETF Flow (USD Million) – 2024-05-13

TOTAL NET HORSE: 66
(provisional data)

IBIT: 0
FBTC: 38.6
BITB: 20.3
ARKB: 0
BTC: 0
EZBC: 0
BRRR: 0
HODL: 7.1
BTCW: 0
GBTC: 0
DEFINITION: 0

For full details and disclaimers visit: https://t.co/4ISlrCgZdk

— Farside Investors (@FarsideUK) May 14, 2024

Grayscale’s GBTC also saw zero net flow for the day as its outflows began to decline. Since becoming a one-time ETF, the fund has hemorrhaged roughly 330,650 BTC worth about $20 billion at current prices.

Crypto market outlook

Crypto markets have gained about 2% on the day to reach $2.40 trillion in total market capitalization at the time of writing. Markets have been in a tight range around this level for the past month, although some volatility is expected with this week’s inflation data.

Bitcoin hit $63,000 in early trading in Asia on Tuesday morning, but has pulled back slightly from there to trade at $62,500 at the time of writing. It remains 15% below its all-time high as the consolidation continues.

Ethereum prices showed a similar pattern, but their gains were not enough to break the $3,000 resistance, and ETH remains weak at $2,930.

Altcoins were predominantly green at the time of writing, with Solana, Dogecoin, Shiba Inu and Near Protocol beating the rest in a meme coin revival.

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