Hong Kong Crypto ETFs Flop in Debut, Trading at $11 Million

As an experienced financial analyst, I find the recent debut of six Spot Bitcoin and Ethereum ETFs in Hong Kong intriguing but underwhelming compared to their US counterparts. While the trading volume on their first day reached HK$87.5 million or $11.2 million, this pales in comparison to the astounding $4.6 billion worth of trades made during the US Bitcoin ETFs’ debut back in January 2021.

The six recently launched bitcoin and ethereum ETFs at the Hong Kong stock exchanges recorded a total trading value of approximately HK$87.5 million, equivalent to around $11.2 million, on their inaugural day of trading, which was on a Tuesday.

As an analyst, I’d rephrase it this way: On Tuesday, six new Ethereum and Bitcoin Exchange-Traded Funds (ETFs) from China Asset Management (ChinaAMC) were launched in Hong Kong. The initial assets under management (AUM) for the Bitcoin ETF amounted to $121.7 million, while the Ether ETF began with $20.4 million.

As a crypto investor, I’ve witnessed some truly remarkable events in the market, but none quite compared to the unprecedented enthusiasm surrounding the launch of Bitcoin Spot ETFs in the US last January. On its first day of trading, the volume reached an astonishing $4.6 billion – a figure that left me and many other investors in awe. The excitement was palpable as we watched the market respond to this long-awaited approval, with many seeing it as a significant step towards mainstream adoption of cryptocurrencies.

As a crypto investor, I’ve noticed that the recent debut of Bitcoin ETFs in Hong Kong didn’t quite live up to the hype compared to the US launch. While the Hong Kong ETFs saw some trading activity, it paled in comparison to the massive transaction volume during the US launch of Bitcoin ETFs for American investors. To put it into perspective, a staggering $4.6 billion worth of trades took place during the January debut of US Bitcoin ETFs, which is an astonishing 383 times more than the reported $12 million in transaction volume for the Hong Kong-listed ETFs.

As a researcher studying the financial markets, I’ve observed that Bitcoin Spot ETFs encountered cool reactions from players in Hong Kong following their Asian introduction, which was approximately three months after their US debut.

In contrast to China’s mainland where cryptocurrency is outlawed, Hong Kong has emerged as the primary hub for digital assets and a secure refuge for investors dealing in exchange-traded commodities.

A Ethereum-backed exchange-traded fund (ETF), yet to be approved by the US Securities and Exchange Commission (SEC), can currently be bought and sold on the Hong Kong stock exchange.

Many people think that because the SEC has adopted a more cautious stance following its decision to allow a Bitcoin ETF, it’s unlikely that quick approval will follow. On Twitter account X, Bloomberg’s Senior ETF Analyst Eric Balchunas shared details about the debut of these Bitcoin ETFs in Hong Kong.

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2024-04-30 20:04