Hong Kong Crypto ETF Outflows Surge to Record $40M

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

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

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

HK ETF Gains Wiped

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 held in the funds worth an estimated $222.5 million at current prices.

The big outflow day reverses the net positive total flow balance, which is now a negative $20.9 million, eradicating all gains since they launched.

Things were looking brighter across the pond in the United States, where Bitcoin ETFs saw a daily inflow of $66 million on May 13.

Flows in both directions have settled down now, but Monday’s inflow reverses the trend for the last two trading days, which have seen $96 million exit the products.

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

Bitcoin ETF Flow (US$ million) – 2024-05-13

TOTAL NET FLOW: 66
(Provisional data)

IBIT: 0
FBTC: 38.6
BITB: 20.3
ARKB: 0
BTCO: 0
EZBC: 0
BRRR: 0
HODL: 7.1
BTCW: 0
GBTC: 0
DEFI: 0

For all the data & disclaimers visit:https://t.co/4ISlrCgZdk

— Farside Investors (@FarsideUK) May 14, 2024

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 hemorrhaged roughly 330,650 BTC worth around $20 billion at current prices.

Crypto Market Outlook

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

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

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 in a meme coin revival.