BlackRock Bitcoin ETF Inflows Halt, Launch of Hong Kong ETFs

Blackrock iShares Bitcoin Trust (IBIT) reported no new revenue inflows for the first time in more than two months. This marks a significant pause in its steady growth.

The slowdown comes amid wide fluctuations in the U.S. spot bitcoin exchange-traded funds (ETFs) market, which contrasts sharply with euphoria in overseas markets such as Hong Kong.

US Spot Bitcoin ETFs stand up as Hong Kong innovations

On April 24, data from Soso Value showed that the US Bitcoin ETF's daily turnover dropped to a negative $120.64 million. Notably, IBIT, which had previously experienced continuous inflows for 71 trading days, experienced zero inflows on the reporting date.

Despite this, IBIT still generates the largest total revenue among its peers, raking in an impressive $15.4 billion.

Read more: What is a Bitcoin ETF?

Other US space Bitcoin ETFs have seen less positive activity over the same period. Only Fidelity Wise Origin Bitcoin (FBTC) and ARK 21 Shares Bitcoin ETF (ARKB) brought in $5.61 million and $4.17 million, respectively.

Meanwhile, Grayscale Bitcoin Trust ETF (GBTC) continues to face challenges. It recorded a daily outflow of $130.42 million, bringing its negative cumulative inflows to an astounding $16.96 billion.

The lack of entry into IBIT raises questions about the future appetite for Bitcoin ETFs in the US. Moreover, this is consistent with the phenomenon of his colleagues in Hong Kong.

Recently, HashKey Exchange announced a partnership with Boshi International and HashKey Capital. They aim to jointly launch the Boshi Hashkey Bitcoin Spot ETF and the Boshi Hashkey Ethereum Spot ETF.

These funds allow the physical redemption of assets. In addition, it highlights a strategic advantage that appeals to investors who want direct exposure to cryptocurrencies without having to sell them immediately.

This innovation in Hong Kong contrasts with conservative approaches in the US market. The Hong Kong EFF is about to start fundraising. Finally, the Hong Kong Stock Exchange will list them on April 30.

Kevin Lee, CEO at Gate.HK, believes the SFC's approval of spot bitcoin and ethereum ETFs is a strategic move. “Hong Kong's regulatory authorities have emphasized that they have a greater understanding of virtual assets.

Li also posits that this, alongside strong regulatory frameworks and government support, will position Hong Kong as a leader in integrating crypto into traditional finance.

“Hong Kong is now in the running to not only be the hub of the Web3 ecosystem, but also to be a leading player in integrating the crypto industry with traditional finance and capital markets,” he told BeinCrypto.

Despite the optimism in Hong Kong, analysts are wary of the immediate impact these new ETFs will have on the broader market. Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, pointed to the limitations of the Hong Kong market.

“The underlying ecosystem is less liquid and less efficient, which can affect the performance of these ETFs,” he said.

Read more: How to trade Bitcoin ETF: A step-by-step approach

However, he remains optimistic about the long-term benefits. “Adding BTC ETFs to other countries will undoubtedly be a plus for Bitcoin,” Balchunas said.