United

Polkadot

Avalanche

Spot

<h2 class="wp-block-heading" id="overview-of-recent-outflows">Overview of Recent Outflows</h2> 
<p>According to recent data from CoinShares, the week spanning from April 27 to May 3 saw significant capital outflows from digital asset funds, totaling $251 million globally. This marks a continued trend, with this being the fourth consecutive week of outflows. Notably, newly issued U.S. ETFs experienced measurable outflows for the first time since their inception, with the average purchase price of the underlying ETF asset starting at $62,200 per Bitcoin.</p> 
<h2 class="wp-block-heading" id="u-s-dominates-capital-outflows">U.S. Dominates Capital Outflows</h2> 
<p>In a more detailed breakdown, the <a href="https://twitter.com/EricBalchunas/status/1787455413090124098" target="_blank" rel="noopener">United States</a> saw the largest outflow, totaling $504 million. Other countries also experienced withdrawals but at a much lower scale; Canada, Switzerland, and Germany had outflows of $9.6 million, $9.8 million, and $7.3 million, respectively. Within the U.S., <a href="https://btc-pulse.com/bitcoin/">Bitcoin </a>was the predominant focus, registering outflows of $284 million. It remained the only digital asset in the U.S. to report a net outflow last week.</p> 
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   <p lang="en" dir="ltr">Yeah as we advised don’t expect big numbers in HK vs US (which is in league of own ETF-wise) but.. the the HK ETFs at $310m is equiv to $50b in US market. So in that regard these ETFs already as big to their local mkt as US ones are to its. <a href="https://t.co/4dIqAiZppJ" target="_blank">https://t.co/4dIqAiZppJ</a></p>— Eric Balchunas (@EricBalchunas) <a href="https://twitter.com/EricBalchunas/status/1787455413090124098?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">May 6, 2024</a>
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<h2 class="wp-block-heading" id="counterflows-in-altcoins">Counterflows in Altcoins</h2> 
<p>Contrasting the outflows, <a href="https://btc-pulse.com/ethereum/">Ethereum </a>marked a significant reversal by attracting $30 million in inflows, breaking a seven-week trend of capital withdrawal. Additionally, other altcoins saw modest inflows, including Avalanche ($500,000), Cardano ($400,000), and Polkadot ($300,000).</p> 
<h2 class="wp-block-heading" id="impact-of-hong-kong-s-etf-launch">Impact of Hong Kong’s ETF Launch</h2> 
<p>The outflows could have been more pronounced if not for the recent launch of exchange-traded products in Hong Kong. These products generated $307 million in proceeds, significantly countering the outflow trend in the U.S. Despite these efforts, Hong Kong’s <a href="https://btc-pulse.com/stripe-reignites-cryptocurrency-payments-usdc/">cryptocurrency </a>ETFs lag behind their American counterparts, which have attracted billions of dollars within the first week of their launch. To date, Hong Kong ETFs have amassed about $22 million, with daily trading volumes not exceeding $10 million.</p> 
<h2 class="wp-block-heading" id="recent-developments-in-hong-kong">Recent Developments in Hong Kong</h2> 
<p>As of May 6, exchange-traded funds in Hong Kong reported their first cumulative fund outflow, according to SoSo Value data. The outflows were predominantly from asset manager ChinaAMC’s Bitcoin ETF, totaling $4.9 million, contributing to a total outflow of $1.7 million for the day.</p> 
<p>This report highlights the dynamic interplay between various global markets in the realm of cryptocurrency investments, underscoring the significant role of new financial products like spot ETFs in managing market volatility.</p>

Hong Kong’s Spot ETFs Help Mitigate Outflows from U.S. Digital Asset Funds

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