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U.S. ETFs See Outflows; Hong Kong ETFs Report Inflows

The HK-based ETFs achieved $12.4 million in trading volume on their debut, modest compared to the $4.6 billion of U.S. spot Bitcoin ETFs but equivalent to $1.6 billion when adjusted for the HK market size.

  • Hong Kong-based spot Bitcoin ETFs saw $217 million in net inflows this week, contrasting with significant outflows of $804 million from U.S. ETFs.
  • Despite a modest initial trading volume of $12.4 million, Hong Kong's ETFs are impactful when adjusted for the local market size, equivalent to $1.6 billion in U.S. terms.

Last month, the Hong Kong Securities and Futures Commission (SFC) approved multiple spot Bitcoin and Ethereum exchange-traded funds (ETFs). 

Now, here’s what’s happening with the Hong Kong-based spot Bitcoin ETFs compared to the U.S.-based ETFs. 

James Butterfill, head of research at CoinShares, posted today on X (formerly Twitter), noting significant outflows from US ETFs, including $804 million from Grayscale this week. In contrast, Hong Kong ETFs experienced $217 million in net inflows.

Additionally, according to a report, although the Hong Kong-based ETFs garnered a modest $12.4 million in trading volume on their first day—a figure that seems small compared to the $4.6 billion of the U.S. spot Bitcoin ETFs—it is relatively significant when adjusted for the size of the Hong Kong market, equivalent to $1.6 billion in U.S. terms.

Upon granting approvals to China Asset Management, Bosera Capital, and HashKey Capital Limited, among others for spot Ethereum and Bitcoin ETFs, Hong Kong became the second jurisdiction to launch a spot Bitcoin ETF in 2024, after the U.S. Securities and Exchange Commission’s (SEC) approval of 11 spot BTC ETFs.

In other news, the recent Bitfinex Alpha market report suggests that Bitcoin may remain the benchmark for crypto market price actions in May, serving as the primary indicator for the entire cryptocurrency market cap. 

The report also suggests that the macroeconomic environment appears more resilient than in previous years, with a low likelihood of rate cuts in the near term.

Edited by Harshajit Sarmah