Hong Kong Bitcoin ETFs Record Their First Outflows as Trading Volumes Tank | Coinspeaker

Hong Kong Bitcoin ETFs Record Their First Outflows as Trading Volumes Tank

ChinaAMC’s Bitcoin ETF registered $75 million outflows on Monday, May 6, while the two other Bitcoin ETFs saw zero inflows. The Hong Kong spot Bitcoin ETFs trading volumes plummeted 90% in a week’s time.

Bhushan Akolkar By Bhushan Akolkar Julia Sakovich Edited by Julia Sakovich Updated 3 mins read
Hong Kong Bitcoin ETFs Record Their First Outflows as Trading Volumes Tank
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On Monday, May 6, the Hong Kong spot Bitcoin ETFs registered their first-ever outflows, all of which were contributed by China Asset Management’s ETF. These outflows come in a relatively short span of time, just within a week of their launch on April 30.

As per data from SoSo Value, nearly $75.36 million left ChinaAMC’s  Bitcoin ETFs on Monday. On the other hand, the other two ETFs from Harvest and Hashkey registered zero inflows. This clearly suggests signs of waning sentiment as the global macro outlook turns absolutely uncertain.

As of Monday, the three ETFs, overseen by ChinaAMC, Harvest, and Bosera-Haskey, collectively held approximately 4,150 bitcoins. Their total net assets increased from $247.7 million on the first day to $266.8 million.

The SosoValue data comes with a caveat: ETF shares obtained through in-kind subscriptions of “physical bitcoins” do not result in cash inflows denominated in dollar terms. Consequently, these transactions are excluded from daily net inflow statistics, clarified the data provider. Instead, the firm relies on the bitcoin-inflow metric, which tracks the actual movement of bitcoins into or out of all ETFs on a given trading day.

However, there have been recent rumors, that the Hong Kong Bitcoin ETF issuers will soon open their gates for the Chinese investors to invest. Richard Byworth, managing partner at SyzCapital, told this on X, in response to Samson Mow.

He said that the spot Bitcoin ETFs in Hong Kong would make way for Stock Connect. This platform allows qualified investors from one region to access eligible shares in other markets. The Shenzhen-Hong Kong Stock Connect establishes a cross-border investment pathway linking the Shenzhen Stock Exchange with the Hong Kong Stock Exchange.

As a result, investors in either market will be able to use their clearing houses and local brokers to trade their shares in the other market.

Hong Kong Bitcoin ETF Trading Volumes Tank

On May 6, Hong Kong’s spot crypto ETFs saw a modest trading volume of $7.7 million, significantly lower than the $1.88 billion volume seen by their US counterparts the previous trading day. The Hong Kong market for spot Bitcoin and Ethereum ETFs experienced a sluggish day, compounded by the ongoing volatility in the broader crypto market.

Despite the high anticipation surrounding their launch, the six spot crypto ETFs have failed to meet the expectations set by asset managers. Chinese blockchain reporter Colin Wu highlighted in a recent report that all six products collectively saw a disappointing trade volume of $7.72 million on May 6, trailing far behind the $1.87 billion recorded by the 11 spot Bitcoin ETFs in the US on May 3.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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