Hong Kong Spot ETFs Ease US Outflow in Digital Assets

As an experienced financial analyst, I believe that the recent outflows from digital asset investments, totaling $251 million last week, is a clear indication of shifting investor sentiment in the cryptocurrency market. The average Bitcoin purchase price during this period was $62,200, which could have led to sell orders and subsequent capital outflows.

Last week, there was a significant withdrawal of funds amounting to $251 million from digital asset investments. This is the first instance of substantial outflows observed in newly introduced U.S. ETFs. According to CoinShares’ report, the average price at which Bitcoin was bought was around $62,200.

As an analyst, I’ve observed that digital asset investment products experienced withdrawals amounting to US$251 million for the fourth consecutive week. However, there was a contrasting trend with Ethereum (ETH), which attracted inflows worth US$30 million during the same period. For a comprehensive analysis and additional data, be sure to check out our full report.— CoinShares (@CoinSharesCo) May 7, 2024

The sell orders, possibly due to price changes, led to a substantial withdrawal of $504 million from U.S. markets. Furthermore, smaller withdrawals were observed in Canada ($9.6 million), Switzerland ($9.8 million), and Germany ($7.3 million).

As a researcher studying the recent trends in cryptocurrency markets, I’ve observed that Bitcoin experienced the largest outflow with a significant amount of $284 million. In contrast, other cryptocurrencies such as Avalanche, Cardano, and Polkadot attracted inflows worth approximately $500,000, $400,000, and $300,000 respectively.

As an analyst, I’ve observed that new exchange-traded products in Hong Kong have brought in a substantial amount of proceeds, totaling $307 million. This influx of funds has acted as a buffer against potential outflows. On the other hand, the market for cryptocurrency ETFs in Hong Kong is lagging behind that of its American counterparts. To date, these ETFs have only attracted $22 million in investments.

On May 6, Hong Kong Exchange-Traded Funds (ETFs) experienced their first net withdrawal since inception, with approximately $4.9 million withdrawn from ChinaAMC’s Bitcoin ETF and a total of $1.7 million being pulled out on that week’s opening trading day, according to Farside Investors’ data.

The substantial withdrawals from digital asset investments and the noticeable disparity in investment levels between Hong Kong and the United States suggest a shift in the dynamics of cryptocurrency markets and the evolving attitudes of investors.

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2024-05-08 09:08