6 months ago
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ChinaAMC’s Bitcoin ETF registered $75 million outflows on Monday, May 6, while the two other Bitcoin ETFs saw zero inflows. The Hong Kong spot Bitcoin ETFs trading volumes plummeted 90% in a week’s time.
On Monday, May 6, the Hong Kong spot Bitcoin ETFs registered their first-ever outflows, all of which were contributed by China Asset Management’s ETF. These outflows come in a relatively short span of time, just within a week of their launch on April 30.
As per data from SoSo Value, nearly $75.36 million left ChinaAMC’s Bitcoin ETFs on Monday. On the other hand, the other two ETFs from Harvest and Hashkey registered zero inflows. This clearly suggests signs of waning sentiment as the global macro outlook turns absolutely uncertain.
As of Monday, the three ETFs, overseen by ChinaAMC, Harvest, and Bosera-Haskey, collectively held approximately 4,150 bitcoins. Their total net assets increased from $247.7 million on the first day to $266.8 million.
The SosoValue data comes with a caveat: ETF shares obtained through in-kind subscriptions of “physical bitcoins” do not result in cash inflows denominated in dollar terms. Consequently, these transactions are excluded from daily net inflow statistics, clarified the data provider. Instead, the firm relies on the bitcoin-inflow metric, which tracks the actual movement of bitcoins into or out of all ETFs on a given trading day.
However, there have been recent rumors, that the Hong Kong Bitcoin ETF issuers will soon open their gates for the Chinese investors to invest. Richard Byworth, managing partner at SyzCapital, told this on X, in response to Samson Mow.
He said that the spot Bitcoin ETFs in Hong Kong would make way for Stock Connect. This platform allows qualified investors from one region to access eligible shares in other markets. The Shenzhen-Hong Kong Stock Connect establishes a cross-border investment pathway linking the Shenzhen Stock Exchange with the Hong Kong Stock Exchange.
As a result, investors in either market will be able to use their clearing houses and local brokers to trade their shares in the other market.
I just got back from Hong Kong. There is talk that the ETF could be added to stock connect. The implications for this are absolutely enormous (basically means mainland money can buy it)
— Richard Byworth ∞/21M (@RichardByworth) May 1, 2024
Hong Kong Bitcoin ETF Trading Volumes Tank
On May 6, Hong Kong’s spot crypto ETFs saw a modest trading volume of $7.7 million, significantly lower than the $1.88 billion volume seen by their US counterparts the previous trading day. The Hong Kong market for spot Bitcoin and Ethereum ETFs experienced a sluggish day, compounded by the ongoing volatility in the broader crypto market.
The total trading volume of the six Hong Kong Bitcoin and Ethereum spot ETFs on May 6 was HK$60.41 million, which was only US$7.72 million. The trading volume of 11 Bitcoin spot ETFs in the United States on the previous trading day was US$1.88 billion, which was 268x that of HK.…
— Wu Blockchain (@WuBlockchain) May 6, 2024
Despite the high anticipation surrounding their launch, the six spot crypto ETFs have failed to meet the expectations set by asset managers. Chinese blockchain reporter Colin Wu highlighted in a recent report that all six products collectively saw a disappointing trade volume of $7.72 million on May 6, trailing far behind the $1.87 billion recorded by the 11 spot Bitcoin ETFs in the US on May 3.
