By
Bhushan Akolkar
May 29th, 2024
Monday’s outflows immediately marked an over 420% increase from Friday’s outflow of 99.99 BTC.
The unpredictable market swings may have caused Hong Kong’s six spot bitcoin and ether exchange-traded funds (ETFs) to see their largest net outflows since their launch at the end of April. According to data from SoSo Value, the outflows occurred on Monday and saw the three spot bitcoin ETFs managed by China Asset Management (ChinaAMC), Harvest, Bosera, and HashKey collectively experience a daily net outflow of 519.5 BTC.
From all indications, the outflows may have been caused by growing investor unease as the crypto market continues to see heightened levels of volatility.
Hong Kong’s Spot Crypto ETFs Experience Unprecedented Daily Net Outflows
Monday’s outflows immediately marked an over 420% increase from Friday’s outflow of 99.99 BTC. ChinaAMC’s spot Bitcoin ETF saw the largest outflow, with 251.65 BTC exiting the fund. Harvest followed by experiencing an outflow of 147.86 BTC, while Bosera HashKey saw 119.99 BTC leave the product.
Notably, the three ETFs now hold about 3,560 BTC as of Monday, meaning that the total net asset has declined to $219.7 million. As of last Friday, SosoValue recorded them having a total net asset of $262.7 million.
Similarly, Farside Investors’ data illustrated a parallel trend, with total daily net outflows from the three spot bitcoin ETFs reaching $32.7 million on Monday, compared to $6.3 million the previous Friday.
Like the BTC counterparts, the three spot ether ETFs also faced substantial daily net outflows as 2,270 ETH left the products on Monday. This was in sharp contrast to the zero flows that they recorded on Friday and a lesser outflow of 471.25 ETH seen on Thursday.
Rising Investor Concern
It might be worth noting that these significant outflows have been occurring against the backdrop of Bitcoin’s (BTC) price. BTC price is down 0.55% in the last 24 hours and was seen trading at $62,029 at press time.
The surge in outflows also indicates a growing apprehension among investors. That is, as they appear to tread cautiously amid the crypto market’s volatility. There is regulatory uncertainty on one part. On the other hand, market analysts also anticipate continued turmoil in the crypto space, at least in the short term. Therefore, all these have raised even more concerns over the market.
At the moment, it remains unclear whether investors are hedging their positions or exiting altogether from crypto-related investment vehicles. Nonetheless, Hong Kong’s crypto ETFs have started the new trading week from a weak position.