HK Bitcoin & Ethereum ETF $12M Volume Is Impressive: Bloomberg Analyst

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As a seasoned crypto investor, I’ve witnessed the ups and downs of the market for quite some time now. The recent developments in Hong Kong’s Bitcoin and Ethereum ETFs have caught my attention, and I couldn’t help but be intrigued by Eric Balchunas’ analysis at Bloomberg.

Eric Balchunas, a senior ETF analyst at Bloomberg, has brought attention to the significant trading activity of Bitcoin and Ethereum ETFs based in Hong Kong. This trend underscores the increasing demand and fascination with the financial markets in this region. Balchunas also refuted criticisms regarding the supposed underperformance of these funds.

Bloomberg Commends HK Bitcoin & Ethereum ETF Performance

Detractors have pointed out that the Hong Kong crypto ETF fell short of its expected $100 million trading volume on its first day. However, in a recent post on Reddit, Balchunas defended these ETFs and praised their accomplishments. He disclosed that the combined trading volume for all Hong Kong crypto ETFs amounted to a substantial $12.4 million.

As a crypto investor following the Hong Kong market, I can’t stress enough the impressive size of this figure. It represents a massive amount, equivalent to around $1.6 billion in US dollars, within this specific market. Although trading volume is strong, it’s important to note that the assets under management (AUM) for these ETFs are even more substantial.

China Asset Management Company (China AMC) announced an impressive asset under management (AUM) figure of $141 million. According to Balchunas, this amount corresponds to approximately “US$22 billion.” The largest portion of these assets, representing about 86%, is invested in Bitcoin, totaling roughly “US$121 million.” Ethereum, on the other hand, holds a 14% share of the AUM.

When contrasting the US and Hong Kong markets, Balchunas noted that while the United States reported $740 million in assets under management (AUM) and an impressive $4.6 billion in trading volume on their first day, Hong Kong’s statistics, when considered in relation to market size, present a contrasting image. In essence, Hong Kong’s trading volume and AUM amount to approximately $25.3 billion and $1.6 billion, respectively, when adjusted for market scale.

Balchunas jokingly remarked about the small scale of Hong Kong’s ETF market, exclaiming, “Is this an ETF market for ants?” Despite its size being smaller than that of the US market, Balchunas remained hopeful regarding the opportune moment for the launch of ETFs in Hong Kong. Additionally, he believed that the influx of approximately $141 million into Hong Kong’s market would help counteract some of the outflows in the US market.

US ETFs Continue Outflow Streak

As a researcher investigating Bitcoin Exchange-Traded Funds (ETFs) in the United States, I’ve noticed a consistent pattern of outflows for the past four trading sessions. On Monday, April 29, a total of $51.6 million was withdrawn from these funds. Among them, Grayscale’s Bitcoin Trust (GBTC) experienced a significant withdrawal, with investors taking out $24.7 million.

Based on information from Farside UK, the ARKB ETF managed by ARK Invest experienced a significant decrease as $31.3 million exited their Bitcoin-focused portfolio. In contrast, Blackrock reported no inflow or outflow of funds for their ETFs during the same period.

As an analyst, I’ve noticed some intriguing flows in the Bitcoin ETF market recently. While the Bitwise Bitcoin ETF drew in a notable $6.8 million, indicating a strong rebound, Fidelity Wise’s FBTC experienced a reverse trend with a substantial $6.9 million outflow. On a positive note, Valkyrie’s BRRR Bitcoin ETF attracted $2.7 million, and Franklin Templeton’s EZBC reported an influx of $1.8 million.

Last week saw a noticeable downturn for Bitcoin ETFs as a whole. The collective funds experienced an outflow of approximately $328 million. Among them, Grayscale’s GBTC stood out with substantial withdrawals, while the BlackRock Bitcoin ETF continued its streak of zero inflows or outflows.

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2024-04-30 16:23