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Hong Kong’s Spot ETF Launches Offset Crypto Fund Outflows from US

In the realm of digital assets, the trend of investment outflows persisted for the fourth consecutive week, with a total outflow of $251 million.

Data from CoinShares reveals that the week spanning from April 27 to May 3 marked the first instance of notable outflows from newly issued U.S. ETFs. The average purchase price of Bitcoin (BTC) underlying ETF assets since their launch stands at $62,200 per BTC, potentially prompting sell orders amidst recent price fluctuations.

The United States witnessed capital outflows totaling $504 million, with withdrawals also observed in Canada, Switzerland, and Germany, totaling $9.6 million, $9.8 million, and $7.3 million, respectively.

Bitcoin notably experienced the largest outflows among cryptocurrencies, totaling $284 million, while Ethereum broke its seven-week spell of outflows, attracting $30 million in inflows.

The inflow trend extended to various altcoins, with Avalanche, Cardano, and Polkadot seeing significant inflows of $500,000, $400,000, and $300,000, respectively.

The overall outflows might have been more pronounced if not for the $307 million in proceeds from exchange-traded products launched in Hong Kong on April 30th.

However, cryptocurrency ETFs in Hong Kong still lag behind their American counterparts, receiving only about $22 million in investments to date, with daily trading volume not surpassing $10 million, according to Bloomberg analyst Eric Balchunas.

On May 6th, Hong Kong’s exchange-traded funds recorded the first cumulative outflow of funds, with SoSo Value data showing negative dynamics primarily in asset manager ChinaAMC and its Bitcoin ETF, totaling $4.9 million. The total outflow for the first trading day of the week amounted to $1.7 million.

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