Technology

Hong Kong Crypto ETF Outflows Reach $40M Record

Initial data from Farside Investors shows that $39.3 million left Hong Kong’s spot Bitcoin and Ethereum ETFs on Monday, May 13. Since their debut on the Hong Kong Crypto ETF Stock Exchange on May 2, this represents the greatest total outflow for the institutional investment products. Bosera, China Asset Management, and Harvest’s spot Bitcoin funds lost a total of $32.7 million, while the three issuers’ Ethereum funds lost a total of $6.6 million.

HK ETF Gains Wiped

Daily turnover was $4.25 million, and the funds had a net redemption of 519.5 BTC, according to SoSoValue. The funds currently have 3,560 BTC, which, at the current price, is worth around $222.5 million. The gains they had made since launch are nullified by the large outflow on the huge outflow day, which turns the net positive overall flow balance negative by $20.9 million.

On May 13, things looked up in America, as $66 million poured into Bitcoin exchange-traded funds (ETFs) in a single day. Now that the dust has settled from both directions, the trend of $96 million leaving the products during the prior two trading days is reversed by Monday’s influx.

The top three funds by inflow totaling $38.6 million were Fidelity’s FBTC fund, Bitwise BITB, and Grayscale’s GBTC. Bitwise has not seen an outflow since May 1, while BlackRock recorded zero for the day. Since converting to a spot ETF, Grayscale’s GBTC has lost approximately 330,650 BTC, or about $20 billion at current prices.

Crypto Market Outlook

The entire market valuation of all cryptocurrencies is now $2.40 trillion, up about 2% from the start of the day. Since last month, the markets have remained quite stable around this level; however, this week’s inflation report is likely to cause some turbulence. Bitcoin hit $63,000 during Tuesday morning’s early Asian trading but has since fallen somewhat, trading at $62,500 as this is written.

As the consolidation process drags on, it has dropped 15% from its peak. Ethereum prices followed a similar trend, but the cryptocurrency’s gains were insufficient. To overcome $3,000 in resistance, and it is currently trading at a low of $2,930. As of this writing, the majority of altcoins were green, with the exception of Solana, Dogecoin, Shiba Inu, and Near Protocol, all of which were leading a meme currency comeback.

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