Inflows from recently launched Hong Kong spot Bitcoin exchange-traded funds (ETFs) fall short in comparison to outflows from United States Bitcoin ETFs.
Hong Kong ETFs witnessed $217 million in net inflows this week, whereas 11 U.S. spot Bitcoin ETFs experienced $298 million in net outflows during the same period.
ETF institutional inflows played a significant role in Bitcoin’s rally to new all-time highs. By mid-February, Bitcoin ETFs constituted around 75% of new investment in the cryptocurrency as it surpassed the $50,000 mark.
Fidelity’s Wise Origin Bitcoin Fund (FBTC) and Grayscale’s GBTC fund recorded substantial outflows on May 1, selling over $191 million and $167.4 million worth of Bitcoin, respectively.
Although the launch of Hong Kong Bitcoin and Ether-based ETFs generated excitement, trading activity was subdued. The ETFs amassed only $12.4 million in trading volume on the first day, considerably lower than the trading volume of U.S. spot Bitcoin ETFs.
Despite modest inflows, the debut of Hong Kong ETFs could set a significant precedent for other jurisdictions. This move opens up Asian markets to crypto exposure, potentially leading to long-term price increases as more countries follow suit.
Bitcoin price experienced a “sell-the-news” event following the debut of Hong Kong ETFs, dropping below the $60,000 psychological threshold on May 1. The breach of the $59,000 support level, also the short-term holder realized price (STH-RP), could prompt a revisit to the $50,000 mark, according to industry experts.
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