🚀 Crypto Hong Kong Crypto ETFs Witness Record $40 Million in Outflows

[Undefeated_Lamba]

Hong Kong’s recently launched Bitcoin and Ethereum Exchange Traded Funds (ETFs) witnessed considerable outflows on Monday. Despite these ETFs experiencing two weeks of consecutive inflows, one bad day at the start of this week virtually wiped out the gains made in the last two weeks.

How Did Hong Kong ETFs Fare?​

The newly launched crypto ETFs witnessed the largest outflow since their listing in the Asian market. This is despite the American ETFs recording a net inflow of $66 million on the same day.

Hong Kong’s Bitcoin ETFs include AMC, Harvest, and Bosera. They reported outflows of $15.5 million, $9.8 million, and $7.4 million, respectively. Ethereum ETFs include exchange offerings by the same three companies, and they reported outflows of $3 million, $3 million, and $0.6 million, respectively.

Many investors viewed Hong Kong’s listing of Bitcoin and ETH ETFs favorably. For crypto enthusiasts, it meant that the digital currency was going further mainstream and could attract investments from this side of the world as well.

Further emphasis was placed on Hong Kong’s interesting political situation, which could pour billions into the crypto scene. Many of these funds don’t have access to crypto investments because they are from mainland China, where holding, buying, and selling crypto is banned entirely.

Are the Hong Kong Crypto ETFs in Trouble?​

Hong Kong is a global financial capital that attracts billions of dollars in investments. The country is governed by the One Country, Two Systems model. It was once part of the British Empire but was returned to China under an agreement. Hong Kong remained a free market despite being handed over to mainland China under the said agreement.

Asians, including Chinese, have a higher rate of crypto adoption than many other ethnicities. This is despite facing massive regulatory challenges in their home countries. China has banned crypto entirely, while countries like South Korea and Japan regulate it extensively.

However, this hasn’t stopped tech-savvy investors from acquiring scarce digital assets, especially the top ones like Bitcoin and ETH.

But why aren’t they interested in ETFs?​

First of all, the Hong Kong crypto ETFs are still in their nascent stage, and it would be unwise to rule them out right now. Second, the listing of these ETFs has come at a time when the digital currency’s price index is quite stagnant overall, and no major price pump has occurred in several weeks, resulting in poor performance of ETFs overall, not just those listed on the Hong Kong exchanges.

Still, it is a cause of concern for these new ETF funds. They need to start doing better soon to be taken as a legitimate investment tool like their American counterparts.