On May 13, Hong Kong witnessed a substantial outflow of $39.3 million from its spot Bitcoin and Ethereum ETFs, marking the highest total outflow since their launch on the Hong Kong Stock Exchange earlier in the month. Notably, Spot Bitcoin funds from Bosera, China Asset Management, and Harvest collectively lost $32.7 million, while Ethereum funds from the same issuers saw a loss of $6.6 million. This significant outflow resulted in a net redemption of 519.5 BTC in a single day, with a daily turnover of $4.25 million. As a consequence, there are currently 3,560 BTC held in the funds, valued at approximately $222.5 million based on current prices.
Meanwhile, the United States experienced a different scenario on the same day, as Bitcoin ETFs recorded a daily inflow of $66 million. This marked a stark contrast to the recent trend, where $96 million had exited the products over the last two trading days. Notably, Fidelity’s FBTC fund led the pack with $38.6 million in inflows, followed by Bitwise BITB with $20.3 million. BlackRock did not witness any significant inflows or outflows but has maintained a positive balance since May 1. Additionally, Grayscale’s GBTC reported a net zero flow for the day, indicating a slowdown in outflows.
The broader cryptocurrency market showed resilience on the same day, gaining around 2% to reach a total capitalization of $2.40 trillion. Despite the overall stability over the past month, some volatility is expected with upcoming inflation data. Bitcoin briefly reached $63,000 in early Asian trading on Tuesday before retracing to $62,500 at the time of writing. The price of Bitcoin continues to be 15% below its all-time high as consolidation persists. Ethereum prices mirrored a similar pattern, failing to breach the $3,000 resistance level and hovering around $2,930.
In the altcoin space, notable performers at the time of writing included Solana, Dogecoin, Shiba Inu, and Near Protocol, leading a revival in meme coins. The overall market sentiment remains positive, with investors closely monitoring price movements and market trends for potential opportunities. It is essential for market participants to stay informed and adapt to the rapidly changing landscape of digital assets to make informed investment decisions.
The recent events in Hong Kong and the United States highlight the dynamic nature of the cryptocurrency market, where trends can shift rapidly within a short period. Investors must exercise caution and conduct thorough research before engaging in cryptocurrency trading to mitigate risks and maximize returns.
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