ETFs
US Bitcoin ETFs See Record Outflows as Hong Kong Counterparts Thrive
The latest weekly report from CoinShares revealed that crypto-related investment products saw their fourth consecutive week of negative flows, led by “measurable outflows from newly issued ETFs in the United States.”
According to the report, the market saw outflows totaling $251 million, with Newborn Nine spot Bitcoin ETFs accounting for over 60%, or $156 million, of these flows.
James Butterfill, head of research at CoinShares, said:
“We estimate the average purchase price of these ETFs since their launch at $62,200 per bitcoin, as the price fell 10% below this level, this may have triggered automatic sell orders.”
A flow analysis showed that Faithfulness FBTC saw the highest exit amountt, with $131 million flowing out of the fund, followed by Ark 21 Shares’ ARKBwhich recorded capital outflows amounting to $84 million.
Table showing year, month and week cumulative crypto ETP flows (Source: CoinShares)
In the meantime, Black Rock IBIT recorded a modest negative flow of $24 million, while Shades of grey Bitcoin ETF continued its outflow trend, with $277 million withdrawn during the period.
The performance of these ETFs pushed U.S. outflows to $504 million. Notably, Canada, Switzerland and Germany also recorded capital outflows totaling $9.6 million, $9.8 million and $7.3 million, respectively.
However, despite the performance of US-based spot Bitcoin ETFs, the new Spot Bitcoin and Ethereum ETFs launched in Hong Kong recorded $307 million in inflows during the first week of trading.
Ethereum and Polkadot attract flows
Through assets, Bitcoin saw releases totaling $284 million, propelling its monthly releases to $291 million.
Previous reports from CryptoSlate have revealed that crypto investors are increasingly seeking exposure to altcoins while reducing their exposure to flagship digital currencies like Bitcoin.
This trend continued this week as altcoins like Avalanche, Cardano and Peas recorded modest inflows of around $0.5 million, $0.4 million and $0.3 million, respectively.
Notably, Ethereum ended its 7-week stretch of negative flows, recording $30 million in inflows last week. This reduced ETH’s year-to-date outflows to a negative $20 million.