Exploring Hong Kong’s ETF Market
In Hong Kong, spot Bitcoin and Ethereum ETFs experienced a significant outflow of $39.3 million on May 13, the highest since their launch on May 2. The outflow impacted funds from Bosera, China Asset Management, and Harvest, with Bitcoin funds losing $32.7 million collectively and Ethereum funds losing $6.6 million. This outflow reversed the gains made by the ETFs since their inception.
The Story Behind the HK ETF Outflow
According to SoSoValue, the funds saw a net redemption of 519.5 BTC in a single day, with a daily turnover of $4.25 million. Currently, there are 3,560 BTC held in the funds, valued at approximately $222.5 million at current prices. This significant outflow erased all previous gains, leading to a negative total flow balance of $20.9 million.
- Bitcoin ETFs in the United States experienced a daily inflow of $66 million on May 13, reversing the trend of the previous two days where $96 million exited the products.
- Fidelity’s FBTC fund led the inflow with $38.6 million, followed by Bitwise BITB with $20.3 million
US vs. Hong Kong ETF Flows
Comparing the flows of Bitcoin ETFs in the United States and Hong Kong shows differing investor sentiments:
- US Bitcoin ETFs received a daily inflow, while Hong Kong ETFs experienced a significant outflow
- Fidelity’s FBTC fund led the US inflows, while the Hong Kong ETFs faced redemption and outflows
The Market Landscape
Crypto markets have seen a 2% increase, reaching a total capitalization of $2.40 trillion. Despite remaining in a tight range for the past month, some volatility is expected due to upcoming inflation data. Bitcoin briefly touched $63,000 in Asian trading but has since dipped to $62,500, still 15% below its all-time high.
- Ethereum’s price movement mirrored that of Bitcoin, struggling to break resistance at $3,000 and settling around $2,930
- Altcoins, including Solana, Dogecoin, Shiba Inu, and Near Protocol, showed positive gains in a meme coin revival
Interpreting the Data
As an investor, it is essential to analyze the flow data of ETFs in different regions and understand the market dynamics impacting cryptocurrency prices. By monitoring outflows, inflows, and total balances, you can gain insights into investor sentiment and make informed decisions regarding your investment portfolio.
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