Overview of Recent Outflows
According to recent data from CoinShares, the week spanning from April 27 to May 3 saw significant capital outflows from digital asset funds, totaling $251 million globally. This marks a continued trend, with this being the fourth consecutive week of outflows. Notably, newly issued U.S. ETFs experienced measurable outflows for the first time since their inception, with the average purchase price of the underlying ETF asset starting at $62,200 per Bitcoin.
U.S. Dominates Capital Outflows
In a more detailed breakdown, the United States saw the largest outflow, totaling $504 million. Other countries also experienced withdrawals but at a much lower scale; Canada, Switzerland, and Germany had outflows of $9.6 million, $9.8 million, and $7.3 million, respectively. Within the U.S., Bitcoin was the predominant focus, registering outflows of $284 million. It remained the only digital asset in the U.S. to report a net outflow last week.
Counterflows in Altcoins
Contrasting the outflows, Ethereum marked a significant reversal by attracting $30 million in inflows, breaking a seven-week trend of capital withdrawal. Additionally, other altcoins saw modest inflows, including Avalanche ($500,000), Cardano ($400,000), and Polkadot ($300,000).
Impact of Hong Kong’s ETF Launch
The outflows could have been more pronounced if not for the recent launch of exchange-traded products in Hong Kong. These products generated $307 million in proceeds, significantly countering the outflow trend in the U.S. Despite these efforts, Hong Kong’s cryptocurrency ETFs lag behind their American counterparts, which have attracted billions of dollars within the first week of their launch. To date, Hong Kong ETFs have amassed about $22 million, with daily trading volumes not exceeding $10 million.
Recent Developments in Hong Kong
As of May 6, exchange-traded funds in Hong Kong reported their first cumulative fund outflow, according to SoSo Value data. The outflows were predominantly from asset manager ChinaAMC’s Bitcoin ETF, totaling $4.9 million, contributing to a total outflow of $1.7 million for the day.
This report highlights the dynamic interplay between various global markets in the realm of cryptocurrency investments, underscoring the significant role of new financial products like spot ETFs in managing market volatility.
