US Bitcoin ETFs see record outflows as Hong Kong counterparts thrive News ▸ US ▸ Bitcoin ▸ Investments
US Bitcoin ETFs see record outflows as Hong Kong counterparts thrive
Hong Kong spot Bitcoin and Ethereum ETFs recorded significant inflows of more than $300 million last week.
2 min read
Updated: May. 7, 2024 at 4:41 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
CoinShares’ latest weekly report revealed that crypto-related investment products saw their fourth consecutive week of negative flows, dominated by the “measurable outflows from the newly issued ETFs in the US.”
According to the report, the market saw an outflow totaling $251 million, with the Newborn Nine spot Bitcoin ETFs accounting for over 60%, or $156 million, of these flows.
James Butterfill, CoinShares head of research, said:
“We estimate the average purchase price of these ETFs since launch to be $62,200 per bitcoin, as the price fell 10% below that level, it may have triggered automatic sell orders.”
A breakdown of the flows showed that Fidelity’s FBTC saw the highest outflow amount, with $131 million exiting the fund, followed by Ark 21 Shares’ ARKB, which saw outflows amounting to $84 million.
Meanwhile, BlackRock’s IBIT saw a modest negative flow of $24 million, while Grayscale’s Bitcoin ETF continued its outflow trend, with $277 million withdrawn during the period.
The performance of these ETFs pushed outflows from the United States to $504 million. Notably, Canada, Switzerland, and Germany also saw outflows totaling $9.6 million, $9.8 million, and $7.3 million, respectively.
However, despite the performance of US-based spot Bitcoin ETFs, the newly launched spot-based Bitcoin and Ethereum ETFs in Hong Kong saw $307 million in inflows during the first week of their trading.
Ethereum and Polkadot draw inflows
Across assets, Bitcoin saw outflows totaling $284 million, propelling its month-to-date outflow to $291 million.
CryptoSlate’s previous reports found that crypto investors increasingly sought exposure to altcoins while reducing their exposure to flagship digital currencies like Bitcoin.
This trend continued this week as altcoins like Avalanche, Cardano, and Polkadot saw modest inflows of approximately $0.5 million, $0.4 million, and $0.3 million, respectively.
Notably, Ethereum broke its 7-week spell of negative flows, seeing $30 million of inflows last week. This has reduced ETH’s year-to-date outflow to a negative of $20 million.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Ethereum
$3,464.43
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Polkadot
$7.28758
Polkadot development is on track to deliver the most robust platform for security, scalability, and innovation.
BlackRock
BlackRock, synonymous with global asset management, is an American multinational investment management corporation based in New York City.
Grayscale Investments
Established in 2013 by Digital Currency Group, Grayscale Investments is a trusted authority on digital currency investing and cryptocurrency asset management.
Fidelity Investments
Fidelity Investments Inc., commonly referred to as Fidelity, is a multinational financial services corporation based in Boston, Massachusetts.