US Bitcoin ETFs see record outflows as Hong Kong counterparts thrive

05/07/2024 20:32
US Bitcoin ETFs see record outflows as Hong Kong counterparts thrive

US Bitcoin ETFs experienced a $504 million outflow, while Hong Kong ETFs saw huge inflows in the first week of trading.

US Bitcoin ETFs see record outflows as Hong Kong counterparts thrive US Bitcoin ETFs see record outflows as Hong Kong counterparts thrive 6 seconds ago · 2 min read

Hong Kong spot Bitcoin and Ethereum ETFs recorded significant inflows of more than $300 million last week.

2 min read

Updated: May. 7, 2024 at 2:32 pm UTC

US Bitcoin ETFs see record outflows as Hong Kong counterparts thrive

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

CoinShares’ latest weekly report revealed that crypto-related investment products saw their fourth consecutive week of negative flows, dominated by the “measurable outflows from the newly issued ETFs in the US.”

According to the report, the market saw an outflow totaling $251 million, with the Newborn Nine spot Bitcoin ETFs accounting for over 60%, or $156 million, of these flows.

James Butterfill, CoinShares head of research, said:

“We estimate the average purchase price of these ETFs since launch to be $62,200 per bitcoin, as the price fell 10% below that level, it may have triggered automatic sell orders.”

A breakdown of the flows showed that Fidelity’s FBTC saw the highest outflow amount, with $131 million exiting the fund, followed by Ark 21 Shares’ ARKB, which saw outflows amounting to $84 million.

Crypto flows
Table showing the year-to-date, month-to-date, and weekly crypto ETP flows (Source: CoinShares)

Meanwhile, BlackRock’s IBIT saw a modest negative flow of $24 million, while Grayscale’s Bitcoin ETF continued its outflow trend, with $277 million withdrawn during the period.

The performance of these ETFs pushed outflows from the United States to $504 million. Notably, Canada, Switzerland, and Germany also saw outflows totaling $9.6 million, $9.8 million, and $7.3 million, respectively.

However, despite the performance of US-based spot Bitcoin ETFs, the newly launched spot-based Bitcoin and Ethereum ETFs in Hong Kong saw $307 million in inflows during the first week of their trading.

Ethereum and Polkadot draw inflows

Across assets, Bitcoin saw outflows totaling $284 million, propelling its month-to-date outflow to $291 million.

CryptoSlate’s previous reports found that crypto investors increasingly sought exposure to altcoins while reducing their exposure to flagship digital currencies like Bitcoin.

Crypto flows
Table showing the year-to-date, month-to-date, and weekly crypto asset flows (Source: CoinShares)

This trend continued this week as altcoins like Avalanche, Cardano, and Polkadot saw modest inflows of approximately $0.5 million, $0.4 million, and $0.3 million, respectively.

Notably, Ethereum broke its 7-week spell of negative flows, seeing $30 million of inflows last week. This has reduced ETH’s year-to-date outflow to a negative of $20 million.

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