On Monday, May 13, Hong Kong's exchange-traded funds (ETFs) for Bitcoin and Ethereum experienced their largest ever net outflows, effectively wiping out all gains achieved since their launch just two weeks prior. Data from Farside Investors revealed significant withdrawals from the spot Bitcoin ETF funds managed by Boshi, China Asset Management, and Harvest Global, totaling US$32.7 million in net outflows. China Asset Management's Bitcoin Fund particularly suffered, witnessing an outflow of US$15.5 million, marking it as the day's biggest loser.
Concurrently, net outflows from the same issuers' spot Ethereum ETFs amounted to $6.6 million, with Harvest Global and ChinaAMC each witnessing $3 million in outflows. These substantial outflows on Monday culminated in total outflows across all funds since trading began on April 30 reaching $20.9 million, surpassing the cumulative inflows recorded as of Friday, May 10, which stood at $18.4 million. This downturn marked the third consecutive session of net outflows from Hong Kong's cryptocurrency ETFs, tallying $52.5 million since May 9.
Monday's outflow also marked the debut of outflows for Harvest Global's Bitcoin ETF, amounting to $9.8 million. Bitcoin's value dipped below $61,000 over the weekend, a decline believed by many to be a consequence of the post-halving adjustment. On April 20, Bitcoin mining rewards were halved, a feature designed to create scarcity in the market. It's a phenomenon often accompanied by a price decline in the subsequent weeks as the market adjusts to the reduction in new supply.
Comparatively, Hong Kong's crypto ETF market remains considerably smaller than that of the United States, both in terms of the number of funds available and assets under management. The U.S. hosts 11 spot Bitcoin ETFs with a combined asset value exceeding $50 billion. In contrast, Hong Kong's ETF market size stands at $179.2 million, with Bitcoin ETFs comprising 88.5% of the market share, leaving the remaining space for Ethereum ETFs, as per data from SoSoValue.
