Hong Kong Bitcoin ETFs Continue to Struggle with Inconsistent Inflows and Outflows
The performance of Hong Kong’s spot bitcoin exchange-traded funds (ETFs) has been lackluster since their launch, with the three ETFs accumulating a total of $228 million in net assets.
The recent trading sessions have seen net negative outflows for the Hong Kong spot bitcoin ETFs, with approximately 104.79 BTC, valued at around $6.95 million, being withdrawn on Thursday. There seems to be little enthusiasm for these ETFs, as their performance has been minimal. While the first trading day saw an inflow of 3,880 BTC, the following days recorded significantly lower inflows, with only 173.13 BTC being added.
On May 3, the three Hong Kong spot BTC ETFs experienced an inflow of 136.03 BTC, but the next trading session witnessed a negative outflow, with approximately 75.67 BTC being withdrawn from the funds managed by China AMC, Harvest, and Bosera. The worst day so far was May 13, when 527.80 BTC were pulled out of the funds. On May 14, there was a modest inflow of around 60.52 BTC.
The outflow of 104.79 BTC, valued at approximately $6.95 million, on May 16 marked the second-largest day of outflows for the funds, second only to May 13. Currently, the Hong Kong spot bitcoin ETFs hold an estimated 3,550 BTC, according to coinglass.com metrics.
Unfortunately, the performance of Hong Kong’s spot bitcoin ETFs has been lagging behind their counterparts in the United States. This is in stark contrast to the initial expectations of substantial inflows from mainland China, which have not materialized. The data from the past ten trading sessions suggest that these expectations are unlikely to be met. Compared to the offerings in the US, the Hong Kong ETFs have had a minimal impact. For instance, the combined reserves of all three BTC ETFs in Hong Kong amount to only 1.28% of the BTC held by Blackrock on Friday.
What are your thoughts on the performances of the Hong Kong spot bitcoin ETFs? Please share your opinions in the comments section below.
