In a surprising twist, Hong Kong's Bitcoin and Ethereum ETFs have seen significant weekly inflows, outperforming the United States' Spot BTC ETF, a major player with $63,487 AUM (Assets under management).

Amid a downturn in the global digital asset ETF market, Hong Kong has emerged as a standout performer, attracting notable inflows. Surpassing the US Spot Bitcoin ETF market, which holds $63,487 AUM, Hong Kong's crypto ETF market is making strides of its own.

Hong Kong Takes the Lead

Recent data from CoinShares reveals a trend of outflows in the digital asset ETF market, with Hong Kong and Brazil being exceptions. Hong Kong led the pack with impressive weekly inflows of $299.9 million, followed by Brazil with $3.9 million.

Hong Kong is home to three key crypto ETF service providers: Harvest Global Investments Ltd., the local arm of China Asset Management, and a collaboration between HashKey Capital Ltd. and Bosera Asset Management (International) Co. Meanwhile, countries like the US, Switzerland, Sweden, Germany, and Canada experienced significant outflows, sparking discussions.

US Spot Bitcoin ETF Trends

Insights from Farside Investors UK show that on May 2, net outflows from US Spot Bitcoin ETFs amounted to $34.4 million, a slight decrease from the $563.7 million recorded on May 1 following Jerome Powell's rate announcement. Notably, BlackRock’s IBIT Bitcoin ETF, Fidelity’s FBTC, and Bitwise’s BITB saw no flows on May 2.

Ark Invest’s ARKB saw $13.3 million inflows, while Valkyrie’s BRRR, Franklin Templeton’s EZBC, and Invesco Galaxy’s BTCO recorded $2.3 million, $3.4 million, and $1.5 million inflows, respectively. However, Grayscale’s GBTC experienced significant outflows of $54.9 million, dominating the outflows on May 2.