a less successful second trading day

On their second day of trading on the Hong Kong market, spot Bitcoin ETFs saw net inflows decline. As a result, the total value of spot Bitcoin ETFs in Hong Kong fell by approximately $12 million overnight.



Second less engaging day for Hong Kong spot Bitcoin ETFs

For their second day of trading on the Hong Kong market, recently launched spot Bitcoin ETFs have seen their net inflows decline somewhat. While $240 million was recorded on this metric on the first day, only $10.3 million was recorded on May 2.

Trading volume, meanwhile, remained almost flat, with just under $10 million recorded. By doing so, the total value held by the various Bitcoin spot ETFs in Hong Kong fell about $12 million day over day.

👉 Spot Bitcoin ETFs Explained: Everything You Need to Know

Performance of Hong Kong spot Bitcoin ETFs since their launch

Unlike US spot Bitcoin ETFs that operate through the “in cash” model, Hong Kong ETFs are based on an “in kind” model. Here, fund inflow is measured in terms of the value of the underlying assets (Bitcoin) exchanged for ETF shares. To do this, we must assess the value of the Bitcoins exchanged at the time of the transaction and use this value as a measure of cash flow.

On the contrary, spot BTC ETFs traded on US exchanges are purchased with cash. This cash is then used by ETF issuers to purchase Bitcoin.

So for the ETFs we are talking about today, their performance is evaluated based on the number of BTC in or out. For now, it is ETF issuer AMC which appears to be leading the Hong Kong marketfollowed by Harvest and then Bosera & Hashkey.

👉 Read on – Bitcoin (BTC) Falling to $50,000? Standard Chartered bank issues warning

For their part, US spot Bitcoin ETFs recorded their 7th day of net outflows, with an outflow record set on May 1st. Whether it is US or Hong Kong ETFs, we must point out that this data correlates with a significant drop in the price of Bitcoin.

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Source: SoSoValue

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