The Hong Kong-listed spot bitcoin and ether exchange-traded funds (ETFs) experienced substantial outflows on Monday, a response to bitcoin’s drop below $61,000. Data from Farside Investors revealed that investors withdrew nearly $40 million from the six spot bitcoin and ether ETFs on the first day of the week.

Spot bitcoin ETFs from issuers ChinaAMC, Harvest Global, Bosera, and Hashkey collectively witnessed outflows of $32.7 million on Monday, a significant increase compared to previous outflows averaging around $6 million. This negative flow trend was mirrored in spot ether ETFs which saw $6.6 million in outflows, also notably higher than past figures.

Despite the initial enthusiasm surrounding these Asia-based ETFs since their launch on May 2, the recent outflows paint a disappointing picture. Over eight days of trading, investors pulled approximately $13 million from the six ETFs. THe Hong Kong-based ETF market, valued at around $50 billion in assets, pales in comparison to the U.S. market estimated at roughly $9 trillion in assets under management.

There were rumors speculating that mainland Chinese investors accessed the funds via Stock Connect, potentially expanding the investor base significantly. However, the Hong Kong stock exchange debunked these rumors earlier in  the week. This episode underscores the interconnected nature of global markets and how investor sentiment can quickly shift based on market movements.

The outflows in the Hong Kong bitcoin and ether ETFs serve as a reminder of the volatility inherent in cryptocurrency markets and how external factors can influence investor behavior. As the market continues to evolve and mature, understanding these dynamics becomes crucial for both investors and market observers.