Hong Kong ETFs Bleed Millions as Market Turbulence Rages On

Hong Kong’s Bitcoin and Ether exchange-traded funds (ETFs) experienced their largest-ever net outflow on Monday, May 13, wiping out all gains made since their launch less than two weeks ago.

According to data from Farside Investors, Bosera, ChinaAMC, and Harvest Global’s spot Bitcoin ETF funds saw net outflows of $32.7 million, with ChinaAMC’s Bitcoin fund leading the losses with $15.5 million in outflows. Additionally, spot Ether ETFs from the same issuers recorded total joint net outflows of $6.6 million, with Harvest Global and ChinaAMC each seeing $3 million in outflows.

Since their trading launch on April 30, these funds have collectively experienced $20.9 million in total outflows, surpassing the $18.4 million in total inflows as of May 10.

Monday marked the third consecutive trading day of net outflows for Hong Kong’s crypto ETFs, with a total of $52.5 million withdrawn from the funds since May 9. Notably, it was the first time Harvest Global’s Bitcoin ETF recorded outflows, amounting to $9.8 million.

This trend coincided with Bitcoin trading below $61,000 over the weekend, which many attribute to a post-halving slump. Bitcoin mining rewards were halved on April 20, typically leading to a decrease in Bitcoin’s price in the following weeks.

It’s important to note that Hong Kong’s crypto ETF market is much smaller in terms of funds offered and assets under management compared to the United States. While the US boasts over $50 billion in assets under management across 11 spot Bitcoin ETFs, Hong Kong’s ETFs manage only $179.2 million, with the majority allocated to Bitcoin ETFs.

In another report, Hong Kong’s six spot Bitcoin and Ether ETFs recorded their largest net outflows since debuting on April 30. The combined daily net outflow for Bitcoin ETFs managed by China Asset Management, Harvest, Bosera, and HashKey totaled 519.5 BTC on Monday, compared to 99.99 BTC on Friday.

ChinaAMC’s Bitcoin ETF saw the highest outflows, followed by Harvest and Bosera HashKey. The total net assets of these ETFs shrunk to $219.7 million from $262.7 million on Friday.

Similarly, the three spot Ether ETFs experienced their largest daily net outflows on Monday, with a total of 2,270 ETH exiting the products. In USD terms, these ETFs recorded a total net outflow of $6.6 million.

As of Monday, Bitcoin was trading at around $62,400, up 2.74% over the past 24 hours.