May 8, 2024
By Sharan Kaur Phillora
Hong Kong’s newly launched spot bitcoin exchange-traded funds (ETFs) experienced their first cumulative daily outflows on Monday, with all withdrawals occurring from the China Asset Management (ChinaAMC) ETF. The funds, which debuted on the Hong Kong Stock Exchange on April 30, faced this setback after a strong start.
Here’s what we know:
On their first trading day, the three ETFs—managed by ChinaAMC, Harvest, and a joint venture between Bosera and HashKey—captured a substantial influx of 3,910 BTC. However, according to data from SosoValue, ChinaAMC’s ETF alone saw a reduction of 75.36 BTC on Monday, while the other two funds recorded no new inflows.
SosoValue clarified that their data does not include ETF shares purchased through in-kind subscriptions of “physical bitcoins,” as these transactions do not generate cash inflows in dollar terms. This detail is critical for understanding the actual financial flows into these products, as the firm focuses on the bitcoin inflow metric, tracking the net movement of bitcoin into or out of the ETFs on any given day.
As of Monday, the three ETFs held approximately 4,150 bitcoins, with their total net assets increasing from $247.7 million at launch to $266.8 million. This growth indicates a continued interest despite the outflows from ChinaAMC’s fund. Farside Investors, another data provider, reported a loss of $4.9 million from ChinaAMC’s ETF, underscoring the specific challenges faced by this fund.
While the total trading volume for these ETFs reached $8.6 million on Monday, up slightly from $8.01 million on the previous Friday, the overall landscape contrasts sharply with the U.S. market. In the United States, spot bitcoin ETFs saw a substantial net inflow of $217.06 million on the same day, with Grayscale’s GBTC fund alone recording a significant influx.
This divergence highlights the varying investor sentiments and market dynamics between the Asian and American markets, offering a unique perspective on the global appeal and challenges of cryptocurrency investments.
About the author
Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.
