On Monday, May 13, Hong Kong witnessed a significant outflow of $39.3 million from spot Bitcoin and Ethereum ETFs. This marks the highest outflow since their launch on the Hong Kong Stock Exchange on May 2. The spot Bitcoin funds from Bosera, China Asset Management, and Harvest collectively lost $32.7 million, while the Ethereum funds from the same issuers lost $6.6 million. The net redemption of 519.5 BTC in a single day and a daily turnover of $4.25 million have led to a total of 3,560 BTC held in the funds worth an estimated $222.5 million at current prices. This sudden outflow has erased all gains since the ETFs were introduced, resulting in a negative total flow balance of $20.9 million.
In contrast to Hong Kong’s outflows, Bitcoin ETFs in the United States experienced a daily inflow of $66 million on May 13. Fidelity’s FBTC fund led the pack with $38.6 million, followed by Bitwise BITB with $20.3 million in inflows. Interestingly, BlackRock registered a zero but has not seen any outflows since May 1. Grayscale’s GBTC also saw a net zero flow for the day, indicating a slowdown in its outflows. Since converting to a spot ETF, Grayscale’s fund has lost around 330,650 BTC worth approximately $20 billion at current prices.
At the time of writing, the crypto markets have reached a total capitalization of $2.40 trillion, marking a 2% gain on the day. Despite this increase, markets have been relatively stable around this level for the past month. However, some volatility is anticipated in light of this week’s inflation data. Bitcoin briefly touched $63,000 in early trading in Asia on Tuesday morning before retracing slightly to trade at $62,500. Ethereum prices followed a similar pattern but failed to break resistance at $3,000, settling at $2,930. Altcoins, on the other hand, were mostly in the green, with Solana, Dogecoin, Shiba Inu, and Near Protocol standing out as top performers in a meme coin resurgence.
Overall, the recent movements in Bitcoin and Ethereum ETFs highlight the fluctuating nature of the cryptocurrency market, with differing trends observed in different regions. As investors navigate these uncertainties, it is essential to stay informed and make strategic decisions to navigate the volatile crypto landscape effectively.
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