Bitcoin spot Exchange-Traded Funds (ETFs) experienced a substantial outflow of funds, totaling $162 million on Tuesday, according to financial analytics firm SoSoValue.
What Happened: The Grayscale Bitcoin Trust (OTC:GBTC) alone saw a withdrawal of $93.2277 million, contributing significantly to its historical net outflow of $17.303 billion. Fidelity's FBTC (BATS:FBTC) bled $35.28 million, while Bitwise's BITB (BATS:BITB) saw an outflow of $34.31 million. Ark's ETF ARKB (BATS: ARKB) was the only ETF recording a net inflow, albeit a modest $3.6 million.
Following these developments, the total net asset value of Bitcoin (CRYPTO: BTC) spot ETFs fell below the $50 billion mark, landing at $49.413 billion.
Also Read: Patrick McHenry Questions SEC's Transparency On Ethereum As A Security
Why It Matters: This trend of outflows contrasts sharply with the optimism surrounding the launch of new cryptocurrency spot ETFs in Hong Kong.
Harvest Global Investments and other firms received approval from the Hong Kong Securities and Futures Commission (SFC) to offer Bitcoin and Ethereum spot ETFs, which started trading on April 30, according to Wu Blockchain.
Notably, the initial offering of these ETFs saw significant interest from regions including Singapore and the Middle East, though Chinese mainland investors remain excluded from participating due to regulatory restrictions.
ChinaAMC led the launch with its Bitcoin and Ethereum spot ETFs, boasting an initial offering size that surpassed $125 million—optimistically compared to U.S. launches by industry insiders.
However, the actual first-day trading volume in Hong Kong reached only $12 million, dwarfed by the $4.6 billion volume observed in the U.S. market on similar opening days.
This discrepancy underscores the varying investor appetite and market dynamics between the regions.
Despite the tepid trading volume, Hong Kong's market showed signs of growth, with the listing of these ETFs heralded as a significant development in the region's financial landscape.
The SFC has outlined a comprehensive regulatory framework for these products, emphasizing the potential risks associated with high volatility and speculation in cryptocurrencies.
What's Next: Looking ahead, the Future of Digital Assets event, scheduled by Benzinga on Nov. 19, is set to delve deeper into these developments.
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