On Monday, May 13, Hong Kong's Bitcoin and Ether exchange-traded funds (ETFs) experienced the largest net outflows since their launch less than two weeks prior, erasing all gains accumulated since their inception.

According to data from Farside Investors, Bosera, ChinaAMC, and Harvest Global's spot Bitcoin ETF funds recorded net outflows totaling $32.7 million.

The largest single-day loss was suffered by ChinaAMC’s Bitcoin fund, which saw outflows of $15.5 million.

In the same vein, spot Ether ETFs managed by these firms reported combined net outflows of $6.6 million.

Harvest Global and ChinaAMC each saw outflows of $3 million, tying for the highest among the issuers.

By the close of Monday, all funds had collectively experienced $20.9 million in total outflows since beginning to trade on April 30.

This exceeded the total inflows of $18.4 million recorded by Friday, May 10.

This marked the third consecutive trading day that Hong Kong's cryptocurrency ETFs registered net outflows, with a cumulative $52.5 million withdrawn from these funds since May 9.

Notably, this was the first occasion of net outflows for Harvest Global’s Bitcoin ETF, totaling $9.8 million.

These developments coincided with BTC trading below $61,000 over the weekend, a decline many attribute to a post-halving downturn.

The halving event on April 20, which reduced Bitcoin mining rewards by 50%, is a scarcity mechanism embedded within the blockchain.

It typically results in a price drop in the subsequent weeks as the market adjusts to the new issuance rate.

Compared to the United States, the cryptocurrency ETF market in Hong Kong is much smaller in terms of both the number of funds and assets under management.

While the United States boasts 11 spot Bitcoin ETFs managing over $50 billion, Hong Kong’s ETFs hold a combined $179.2 million in assets.

Of this, 88.5% is invested in Bitcoin ETFs, with the remainder allocated to Ether ETFs, as reported by SoSoValue.

Sources:

https://cointelegraph.com/news/hong-kong-bitcoin-ether-etf-inflows-wiped-record-outflow

https://farside.co.uk/?p=1508

https://sosovalue.xyz/assets/etf/hk-eth-spot