Hong Kong Bitcoin ETFs Struggle Against US ETF Selling Pressure

The net inflows from Hong Kong’s newly launched Bitcoin exchange-traded funds (ETFs) are not sufficient to compensate for the selling pressure caused by the 11 US Bitcoin ETFs. According to James Butterfill, the head of research at CoinShares, the Hong Kong ETFs received $217 million worth of net inflows this week, whereas the US ETFs generated net outflows of $298 million. Institutional inflows from ETFs played a significant role in the recent Bitcoin rally. In fact, by February 15th, Bitcoin ETFs accounted for about 75% of new investments in the cryptocurrency as it surpassed $50,000. Fidelity’s Wise Origin Bitcoin Fund and Grayscale’s GBTC fund experienced significant outflows on May 1st, selling millions of dollars worth of Bitcoin.

Although the launch of the first Bitcoin and Ether-based ETFs in Hong Kong created excitement among crypto holders, trading activity has been underwhelming. During the first day, the Hong Kong-based ETFs only accumulated $12.4 million in trading volume, which is considerably lower compared to the $4.6 billion trading volume of US spot Bitcoin ETFs. This is still a substantial figure considering the smaller size of the Hong Kong market. Despite the relatively small inflows, the debut of the Hong Kong ETFs could set a significant precedent for other jurisdictions, opening up Asian markets to crypto exposure.

The debut of the Hong Kong ETFs had a negative impact on Bitcoin prices. BTC fell below the psychological level of $60,000 on May 1st, just a day after the ETFs were launched. This was the first time Bitcoin traded below $60,000 since the end of February. Bitcoin also lost a crucial support line at $59,000, which acted as the average inflow price of the ETFs. Due to this dip, there is a possibility that Bitcoin could revisit the $50,000 mark. Jag Kooner, head of derivatives at Bitfinex, explained that losing the $59,000 support level could trigger a cascade effect, leading to a drop in prices to the low $50,000 range.

The inflows from Hong Kong’s ETFs are not enough to offset the selling pressure from US Bitcoin ETFs. The debut of the Hong Kong ETFs had lackluster trading activity, but it could have significant implications for other jurisdictions. Bitcoin prices have dipped below $60,000 and losing the $59,000 support level may result in a revisit to the $50,000 mark.

Aguinaldo Sharrow

Aguinaldo Sharrow

9 thoughts on “Hong Kong Bitcoin ETFs Struggle Against US ETF Selling Pressure

  1. The $59,000 support level is crucial for Bitcoin’s price stability. Let’s hope it holds strong!

  2. The Hong Kong debut might not have had a huge impact on Bitcoin prices, but let’s see how it shapes the future of crypto in the region.

  3. The lackluster trading activity of the Hong Kong ETFs is a letdown. We needed a stronger start to boost confidence in the market.

  4. Losing the $59,000 support level could trigger a cascade effect and lead to a drop in prices. That’s important to keep an eye on. 📉👀

  5. The debut of the Hong Kong ETFs may have had a modest trading volume, but it’s a step towards wider adoption in Asia.

  6. Overall, this article sheds light on the interplay between different Bitcoin ETFs and their impact on the market. Very insightful!

  7. Despite the dips, it’s fascinating to think about how the Hong Kong ETFs could set a precedent for other jurisdictions.

  8. It’s unfortunate to hear that the debut of the Hong Kong ETFs had a negative impact on Bitcoin prices.

  9. Despite the smaller market size, I expected the Hong Kong ETFs to have a more significant impact. It’s disappointing to see such low trading volume.

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