Lackluster Performance for Hong Kong Bitcoin ETFs Since Launch

Since the Hong Kong spot bitcoin exchange-traded funds (ETFs) began trading, their performance has been underwhelming, with three ETFs accumulating around $228 million in net assets.

Inconsistent Inflows and Outflows Mark Hong Kong Bitcoin ETFs’ First Weeks

On Thursday, the spot bitcoin ETFs in Hong Kong experienced net negative outflows of approximately 104.79 BTC, valued at about $6.95 million. There has been little enthusiasm for the Hong Kong spot bitcoin ETFs or the spot ethereum ETFs, as their performances have been minimal. The first trading day was the best, with an inflow of 3,880 BTC, while the next day’s sessions recorded a significantly lower inflow of 173.13 BTC.

On May 3, the three Hong Kong spot BTC ETFs saw an inflow of 136.03 BTC, but the following trading session witnessed a negative outflow. Roughly 75.67 BTC was withdrawn from China AMC, Harvest, and Bosera’s funds. The worst day so far was May 13, with 527.80 BTC pulled out of the funds. On May 14, the three funds had a modest inflow of around 60.52 BTC.

The outflow on May 16 of 104.79 BTC, valued at approximately $6.95 million, marked the funds’ second-largest day of outflows besides May 13. So far, Hong Kong’s spot bitcoin ETFs have accumulated $228.4 million in assets and currently hold an estimated 3,550 BTC, according to coinglass.com metrics. Their performance over the past ten trading sessions has lagged behind the U.S. spot bitcoin ETFs.

This outcome starkly contrasts with the initial expectations of substantial inflows from mainland China. These projections have not materialized, and the ten-day data suggest they are unlikely to do so. Compared to the U.S. offerings, the Hong Kong ETFs have barely made an impact. For example, the combined reserves of all three BTC ETFs in Hong Kong amount to only 1.28% of the BTC held by Blackrock on Friday.

What do you think about the performances of the Hong Kong spot bitcoin ETFs? Share your thoughts and opinions about this subject in the comments section below. #Write2Earn