BTC and ETH ETFs in Hong Kong have experienced a remarkable surge in weekly inflows of $300 million after a slow start. In contrast, U.S. spot Bitcoin ETFs saw astonishing withdrawals totaling $860 million. This influx of capital has put Hong Kong in the spotlight, while other digital asset ETF markets around the world have suffered losses. The Asian crypto ETF market is now surpassing the U.S. Spot Bitcoin ETF market in terms of weekly flows.
The introduction of Bitcoin and Ethereum ETFs in Hong Kong initially faced challenges but has now achieved a significant milestone with weekly inflows of approximately $300 million. On the other hand, last week saw a surprising turn of events as U.S. spot Bitcoin ETFs experienced withdrawals amounting to a staggering $860 million.
Data from CoinShares reveals that, apart from Hong Kong and Brazil, the digital asset ETF market witnessed substantial outflows this week. Hong Kong took the lead with an impressive $299.9 million in weekly inflows, followed by Brazil with $3.9 million.
Prominent crypto ETF service providers in Hong Kong include Harvest Global Investments Ltd., China Asset Management’s local business, HashKey Capital Ltd., Bosera Asset Management (International) Co., and a collaboration between the latter two. In contrast, the United States, Switzerland, Sweden, Germany, and Canada all saw significant withdrawals, leading to increased speculation.
The recent Federal Open Market Committee meeting, where Jerome Powell decided to maintain interest rates steady once again, appears to be the primary reason behind the withdrawals from U.S. spot Bitcoin ETFs. When combined, these factors have allowed Hong Kong to surpass all other regions in terms of capital inflows into crypto-related exchange-traded funds (ETFs) worldwide.
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