Hong Kong Bitcoin ETF – Two Weeks of Flows Wiped Out
NAIROBI (Coinchapter.com) - Hong Kong’s Bitcoin and Ethereum ETFs experienced unprecedented net outflows totaling $39 million on May 13. This significant flow of funds came after the price of Bitcoin fell below $61,000 last Friday. The outflows wiped out two weeks of gains since the ETFs were launched on May 2.


Source: X
Bitcoin ETFs from Bosera, ChinaAMC, and Harvest Global were hit the hardest. They saw a combined net outflow of $32.7 million. ChinaAMC’s Bitcoin fund experienced the largest single outflow, losing $15.5 million. Spot Ethereum ETFs from the same issuer faced a combined net outflow of $6.6 million. Harvest Global and ChinaAMC’s Ethereum ETFs saw net outflows of $3 million each.
Impact on Hong Kong’s crypto market
Monday’s outflows marked the third consecutive day of net outflows from Hong Kong crypto ETFs. The total withdrawals reached $52.5 million since May 9. This was the first time that the Harvest Global Bitcoin ETF saw outflows, totaling $9.8 million.


Fund flows for Bitcoin and Ethereum ETFs in Hong Kong. Source: Farside Investors
Many attributed Bitcoin’s drop below $61,000 to a post-halving slump. On April 20, the Bitcoin network halved the bitcoin mining reward, a built-in scarcity mechanism. Such halvings typically cause markets to temporarily drop as they adjust to the new issuance schedule.
The scale of the outflows highlights the volatility and risk of the cryptocurrency market. Despite the large outflows, the impact on the overall market is unclear. Compared with the United States, the size of the crypto ETF market in Hong Kong is relatively small.
Hong Kong Bitcoin ETF: Outflows outweigh early gains
In addition, Huaxia’s Bitcoin Fund was the biggest loser, with a net outflow of $15.5 million. Bosera and Harvest Global’s spot Bitcoin ETFs also saw significant net outflows totaling $32.7 million. The same was true for Ethereum ETFs, with Harvest Global and Huaxia’s funds seeing net outflows of $3 million each.
As of Monday, all crypto ETFs faced a total of $20.9 million in net outflows, which exceeded the cumulative net inflows of $18.4 million since their launch on April 30.
Comparison with the US Crypto ETF Market
It is worth noting that while the crypto ETF market in Hong Kong is growing, it is still small compared to the U.S. market. In the U.S., there are 11 spot Bitcoin ETFs managing more than $50 billion in assets. In comparison, Hong Kong's total ETF AUM is $179.2 million. Of this, 88.5%'s funds are allocated to Bitcoin ETFs, and the rest are allocated to Ethereum ETFs.
This difference highlights the difference in size and adoption between the two markets. Hong Kong’s recent outflows highlight the market’s fragility and the challenges of building stability and investor confidence.
In summary, the massive outflows from Hong Kong’s Bitcoin and Ethereum ETFs on May 13 wiped out two weeks of inflows. The event highlighted the volatility of the cryptocurrency market and the challenges that emerging markets face in establishing stable and sound investment vehicles.