Spot ETFs in Hong Kong launch softened outflow from US funds

According to CoinShares data, the week from April 27 to May 3 marked the first time there were any measurable outflows from newly issued U.S. ETFs. The average purchase price of the underlying ETF asset since launch is $62,200 per Bitcoin (BTC), with the recent price fluctuations potentially triggering sell orders.

Capital outflows totaled $504 million in the United States. Withdrawals were also noted in Canada, Switzerland, and Germany, totaling $9.6 million, $9.8 million, and $7.3 million, respectively.

Bitcoin was the main focus among cryptocurrencies, with outflows of $284 million, and was the only digital asset to see outflows.

“Ethereum broke its 7-week spell of outflows, seeing US$30m of inflows last week.”

CoinShares report

The influx was marked by a wide range of altcoins, the most significant of which were Avalanche, Cardano, and Polkadot at $500,000, $400,000, and $300,000, respectively.

Outflows could have been even higher if not for the $307 million in proceeds from exchange-traded products launched on April 30 in Hong Kong.

So far, cryptocurrency ETFs in Hong Kong are far behind their American counterparts. The latter received investments amounting to several billion dollars in the first seven days. To date, Hong Kong ETFs have received about $22 million, and daily trading volume does not exceed $10 million, notes Bloomberg analyst Eric Balchunas.

On May 6, exchange-traded funds in Hong Kong recorded the first cumulative outflow of funds, SoSo Value data shows. Moreover, negative dynamics were observed only in asset manager ChinaAMC and its Bitcoin ETF at $4.9 million. The total outflow for the week’s first trading day amounted to $1.7 million.