In a striking financial reversal, Hong Kong’s Bitcoin and Ether exchange-traded funds (ETFs) faced a severe blow on Monday, May 13, with a record $39 million in net outflows, erasing all gains accrued since their inception less than two weeks prior. This marked the largest single-day outflow since the launch of these crypto ETFs.
Detailed Outflow Analysis
The net outflows primarily concentrated among three key ETF providers: Bosera, ChinaAMC, and Harvest Global. ChinaAMC’s Bitcoin ETF was hit hardest, recording $15.5 million in net outflows, according to data from Farside Investors. In total, the spot Bitcoin ETFs from these issuers experienced outflows of $32.7 million.
On the other hand, the spot Ether ETFs from the same providers saw a combined outflow of $6.6 million. Notably, Harvest Global and ChinaAMC reported the largest individual outflows for Ether, totaling $3 million each.
Also Read: Hong Kong’s Harvest Aims to Bridge Bitcoin ETF to Mainland
Since their trading debut on April 30, these ETFs have cumulatively posted $20.9 million in outflows, surpassing the $18.4 million in inflows recorded until May 10.
Context and Market Dynamics
These ETF outflows coincided with a broader market downturn, with Bitcoin trading below $61,000 after its recent halving event on April 20, which reduced mining rewards by 50%. This event typically leads to a temporary drop in Bitcoin’s price as the market adjusts to the decreased supply flow.
Compared to the U.S., which boasts 11 spot Bitcoin ETFs with over $50 billion in assets under management, Hong Kong’s crypto ETF market is relatively smaller, managing a total of $179.2 million. Bitcoin ETFs hold an 88.5% share of this total, with the rest allocated to Ether ETFs.
This episode underscores the volatility and growing pains of the cryptocurrency investment landscape, particularly in emerging markets like Hong Kong.
