U.S. Bitcoin ETFs Attract Billions While Hong Kong Investors Favor Equities
Bitcoin exchange-traded funds (ETFs) in the U.S. continue to dominate global inflows, highlighting the divergence between Western institutional interest in crypto and Asia’s more cautious stance.
According to CoinShares’ latest weekly report, digital asset investment products attracted $4.39 billion in inflows globally for the week ending July 21. An overwhelming 99% of that capital—$4.36 billion—flowed into U.S.-listed crypto ETFs, underscoring America’s lead in institutional adoption.
Hong Kong, by contrast, saw muted interest in crypto ETFs, with just $14.1 million in inflows over the same period. That figure accounted for only 1.6% of the $880 million total ETF flows on the Hong Kong Stock Exchange (HKEX) between July 14 and 18, as local investors appeared to prefer traditional equity-based funds amid continued regulatory caution.
While bitcoin prices hovered above $119,000, enthusiasm in Hong Kong remained concentrated in non-crypto asset classes. Bond ETFs attracted the bulk of new capital in the U.S., with $5.55 billion in inflows, while U.S. equity ETFs recorded $11.75 billion in outflows, signaling a shift in investor positioning.
Analysts believe Hong Kong’s crypto ETF market could see significant growth if access is opened to capital from mainland China. One potential mechanism is through the Qualified Domestic Institutional Investor (QDII) program, which would allow mainland investors to gain exposure to crypto via Hong Kong-based ETFs without direct asset ownership.
“Mainland investors could access bitcoin through ETFs in Hong Kong, much like they do with U.S. equities or foreign funds,” said Red Date Technology CEO Yifan He at the Consensus Hong Kong conference earlier this year. While crypto trading remains banned in mainland China, regulators are reportedly studying the asset class more seriously, potentially paving the way for policy changes.
For now, the U.S. remains the clear leader in institutional crypto investment, driven by regulatory clarity and growing confidence in bitcoin as a strategic asset.
By the Numbers:
- U.S. crypto ETF inflows (week ending July 21): $4.36 billion
- Hong Kong crypto ETF inflows: $14.1 million
- Total ETF flows on HKEX (July 14–18): $880 million
- Crypto’s share of HK ETF flows: 1.6%
- U.S. equity ETF outflows: $11.75 billion
- U.S. bond ETF inflows: $5.55 billion
