Bitcoin ETF in Hong Kong: a first day of massive withdrawals

The law of the market. Investors who decide to buy shares of a Bitcoin ETF in cash are completely free to sell them whenever they want, and for many of them, the day of May 13 was synonymous with resale on the Hong Kong market. Kong since it was on this day that the three Bitcoin ETFs in the special administrative region saw their most massive outflows. Launched on April 30, these financial products have had much less success than their listed American counterparts since the beginning of January, but the situation could change with the probable arrival of Chinese investors in the game. In the meantime, the entries and exits of these Bitcoin ETFs are closely scrutinized by specialists and the figures for the day of the 13th are clearly negative. A look back at these significant withdrawals with data from SosoValue.

519 bitcoins leave Hong Kong’s 3 spot Bitcoin ETFs in one day

In Hong Kong, since April 30, there have been 3 spot Bitcoin ETFs and 3 spot Ethereum ETFs which are offered by China Asset Management (ChinaAMC), Harvest Global and by Bosera in collaboration with HashKey and the day of May 13 was by far the largest in terms of withdrawals from all of these funds. In fact, during this session there were no less than 519.5 BTC which came out of these 3 ETFs against 99.99 BTC for the previous Friday and the cumulative value of these ETFs is now equal to 219.7 million dollars against 261.7 before the weekend according to SosoValue data.

In detail, the bitcoin ETF of ChinaAMC lost 251.65 bitcoinsthat of Harvest 147.86 And the one of Bosera & HashKey 119.99. These net outflows should be put into perspective with developments in the crypto market which showed some signs of weakness at the end of last week where even American Bitcoin ETFs recorded larger outflows than usual. As a reminder, it is not the funds themselves that decide to exit or enter these ETFs but they copy the demand of their clients. If the majority wants to enter, they buy; if she wants to sell, they go out.

In Hong Kong on May 13, Bitcoin and Ethereum spot ETFs experienced a day of significant withdrawals

2,270 ethers are also withdrawn from the 3 Ethereum spot ETFs

On the Ethereum side, things are more or less the same since spot ETFs also experienced a day where withdrawals were greater than entries on May 13. That day, 2,270 ETH went out ETFs while in comparison, the balance was nothing the previous Friday and only 471.25 ether were released the day before, Thursday May 9. In dollars, these outflows represent 6.6 million cumulative on the 3 spot Ethereum ETFs according to Farside.

The crypto market is currently in a transition phase where investment volumes in ETFs are at their lowest since March in the United States, where research on Google are also at lows and where the price of Bitcoin continues to evolve around $60,000 without any real significant purchasing movement. It is ultimately normal that Hong Kong ETFs are also impacted downwards by the unfavorable economic situation, but there is no doubt that inflows will regain the upper hand over outflows during the next bullish phase.

And it should not take long if we are to believe the various observers who are projecting a rather calm summer before an explosive return to the crypto market. For others, it is still a good time to buy Bitcoin anyway since its price will only increase in the coming months and years to reach prices that could be incredible.



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