Investments in digital assets witnessed a fourth consecutive week of outflow, totaling $251 million.
CoinShares data reveals that from April 27 to May 3, newly issued U.S. ETFs experienced measurable outflows for the first time. The average purchase price of the underlying ETF asset since launch stands at $62,200 per Bitcoin (BTC), with recent price fluctuations potentially triggering sell orders.
Capital outflows in the United States amounted to $504 million. Similar withdrawals were observed in Canada, Switzerland, and Germany, totaling $9.6 million, $9.8 million, and $7.3 million, respectively.
Bitcoin remained the primary focus among cryptocurrencies, with outflows totaling $284 million, making it the only digital asset to experience outflows.
Conversely, there was an influx of investments in various altcoins, notably Avalanche, Cardano, and Polkadot, receiving $500,000, $400,000, and $300,000, respectively.
The outflows could have been more pronounced if not for the $307 million in proceeds from exchange-traded products launched in Hong Kong on April 30.
Despite this, cryptocurrency ETFs in Hong Kong lag significantly behind their American counterparts. While the latter received investments amounting to several billion dollars within the first seven days, Hong Kong ETFs have garnered only about $22 million to date, with daily trading volume not exceeding $10 million, as noted by Bloomberg analyst Eric Balchunas.
On May 6, Hong Kong’s exchange-traded funds recorded their first cumulative outflow of funds, according to SoSo Value data. The negative trend was primarily observed in asset manager ChinaAMC and its Bitcoin ETF, registering $4.9 million in outflows. The total outflow for the first trading day of the week amounted to $1.7 million.
Summary Review: The recent weeks have seen a continued outflow of investments in digital assets, with notable withdrawals from newly issued U.S. ETFs and similar trends observed in other countries. Bitcoin remained the focus of outflows, while altcoins like Avalanche, Cardano, and Polkadot attracted investments. The launch of exchange-traded products in Hong Kong injected a substantial sum into the market, mitigating potential outflows. However, compared to their American counterparts, cryptocurrency ETFs in Hong Kong still have a long way to go in terms of attracting investments and trading volume. Despite this, the cryptocurrency market remains dynamic, with fluctuations in investment patterns reflecting evolving investor sentiments. The coming weeks will be crucial in assessing how these trends shape the future of digital asset investments globally.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
