Asian Markets Briefing: U.S. BTC ETF Sees Stronger Inflows Than Hong Kong as Stock Holdings Dominate

U.S. Bitcoin ETFs Attract Billions While Hong Kong Waits on Mainland Access

The divergence between U.S. and Hong Kong crypto ETF markets widened further last week, as U.S.-listed bitcoin funds drew massive inflows while Hong Kong products saw only modest gains, according to data from CoinShares.

Digital asset investment products recorded total inflows of $4.39 billion globally for the week ending July 21. U.S. funds accounted for nearly all of that, including $4.36 billion in new capital. In stark contrast, Hong Kong-listed crypto ETFs managed just $14.1 million in inflows, signaling tepid regional demand.

That subdued interest comes despite solid activity across Hong Kong’s broader ETF market. According to data from Hong Kong Exchanges and Clearing, local ETFs attracted $880 million in net inflows between July 14–18, with most of the capital going to equity-focused products. Crypto ETFs represented just 1.6% of that total.

Meanwhile, in the U.S., crypto funds appear to be outpacing traditional asset classes. While equity ETFs experienced net outflows of $11.75 billion and bond funds saw $5.55 billion in inflows, crypto investment products were one of the few segments seeing robust demand—further cementing their role in institutional portfolios.

Analysts say this gap could narrow if Hong Kong gains access to demand from the Chinese mainland. At the Consensus Hong Kong event in February, Red Date Technology CEO Yifan He pointed to the Qualified Domestic Institutional Investor (QDII) program as a potential channel for mainland investors to gain indirect exposure to Hong Kong-listed spot crypto ETFs.

“The structure would avoid direct crypto ownership,” He said. “Investors would access these products via licensed intermediaries, much like how they invest in overseas equities or ETFs today.”

Such an arrangement would allow capital flow within China’s regulatory framework, potentially unlocking significant demand. Although capital controls remain a challenge, He noted a softening in regulatory language and a growing willingness from Chinese officials to engage with the crypto sector.

“Regulators aren’t easing bans yet,” he said. “But they’re starting to study bitcoin and digital assets more seriously.”

If such indirect access were granted, it could transform Hong Kong’s crypto ETF market—currently underutilized despite a favorable regulatory environment.

For now, the momentum remains firmly with U.S. funds, which are capturing the lion’s share of capital and attention from global investors.

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