As an analyst with extensive experience in the global financial market, I must admit that Hong Kong’s Bitcoin ETF growth is indeed encouraging, but it’s clear they have a long road ahead to rival the U.S. market’s momentum. Having worked in both regions, I can attest to the unique challenges and opportunities each presents.
As a researcher, I’m excited to share that the Bitcoin exchange-traded funds (ETFs) based in Hong Kong have surpassed an impressive milestone. Specifically, their collective assets under management (AUM) now stand at approximately HK$2 billion, which is equivalent to around $256 million USD. This significant growth underscores the growing interest and confidence in Bitcoin investment among the financial community in Hong Kong.
While the local cryptocurrency market is making consistent advancements, it’s worth noting that the growth of these ETFs (Exchange-Traded Funds) is happening at a more gradual speed when compared to their counterparts in the U.S. market.
As a researcher, I’ve found that Bitcoin ETFs in Hong Kong, specifically the three spot ones, have accumulated approximately 247 Bitcoins over the last week, boosting their collective holdings to roughly 4,450 Bitcoins. This growth now values their combined Assets Under Management (AUM) at approximately HK$2.1 billion, or equivalent to $269 million in U.S. dollars.
As a researcher, I’ve been examining the asset distribution within the Hong Kong-listed ETF market. Two significant players in this space, China Asset Management and Harvest Asset Management, along with digital asset platform OSL, collectively manage over HK$1.3 billion ($167 million) through their ETFs. Interestingly, a third ETF, operating independently from OSL, manages approximately HK$776 million ($99.5 million), accounting for around 42% of the market share.
In contrast to equivalent investment funds in the U.S., Hong Kong’s ETFs experienced a relatively slow commencement. Upon their debut earlier this year, they attracted only $14 million in fresh investments during their initial week, which pales in comparison to the billions that were invested into U.S. Bitcoin ETFs when they made their debut.
The gap revealed here highlights several hurdles that Hong Kong might encounter when striving to emerge as a premier destination for crypto investment worldwide.
Experts such as Rebecca Sin from Bloomberg suggest that Hong Kong’s ETF (Exchange-Traded Fund) structure may spur increased asset accumulation and trading in the future. However, despite these prospects, Hong Kong continues to face challenges in capturing the same level of attention or interest compared to the U.S. market.
It appears that Hong Kong may soon permit indirect Bitcoin Exchange-Traded Funds (ETFs) to use in-kind creations and redemptions instead of cash, similar to how it’s done in the second quarter. This could potentially stimulate assets under management (AUM) and trading volume in the rapidly expanding region, according to a new report by Rebecca Sin_SK.
— Eric Balchunas (@EricBalchunas) March 26, 2024
In essence, though Hong Kong’s Bitcoin ETFs are expanding, they still trail behind well-established markets such as the U.S., indicating there is significant room for growth in this area.
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2024-08-24 13:42