Hong Kong Bitcoin and Ethereum ETFs Record Only $12 Million Volume on Day 1

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As a researcher with a background in financial markets and experience observing the development of Bitcoin and Ethereum ETFs in various regions, I find the slow start of Hong Kong’s spot Bitcoin and Ethereum ETFs to be an interesting observation. With a combined trading volume of only $12 million on their first day, these products pale in comparison to the staggering $4.6 billion trading volumes witnessed by U.S. spot Bitcoin ETFs on their launch day.

The beginning of the Hong Kong Bitcoin and Ethereum ETFs’ debut has been underwhelming, with a total trading volume of merely $12 million across the six products. In contrast, US spot Bitcoin ETFs experienced an astonishing $4.6 billion in trades on their first day.

Hong Kong Bitcoin ETFs To A Slow Start

As an analyst, I’ve reviewed the trading data from the Hong Kong Exchanges and Cleansing (HKEX) for today’s session. Notably, the “ChinaAMC Bitcoin ETF” by China Asset Management took the lead in trading volume, recording a significant turnover of HK$87.58 million during the first half of the trading day. In close second place was the “ChinaAMC Ether ETF,” which also saw substantial activity with a trading volume of HK$12.66 million.

Today marks the official launch of six new Bitcoin and Ethereum exchange-traded funds (ETFs) in Hong Kong, each managed by reputable firms: China Asset Management, Harvest Global, Bosera, and HashKey. These ETFs feature a focus on the six key spots in the digital asset market.

In the morning trading session, Harvest recorded a trading volume of approximately HK$8.11 million for its spot bitcoin ETF and around HK$2.18 million for its ether ETF. On the other hand, Bosera HashKey’s bitcoin ETF had a trading volume of about HK$3.59 million, while its ether ETF saw roughly HK$1.53 million in trades.

ChinaAMC revealed that the initial offering periods (IOPs) for its two ETFs, the ChinaAMC Hong Kong Bitcoin ETF and the ChinaAMC Ethereum ETF, stand at HK$950 million and HK$160 million respectively as of today. This equates to around US$142 million in total. It’s worth noting that the Bitcoin ETF is about six times larger than the Ethereum ETF in size.

Will Chinese Money Find A Way to Invest?

As a researcher studying Chinese investment trends, I’ve observed that Chinese investors have faced challenges with their underperforming stock market and the lingering effects of the 2020 real estate market collapse. However, despite these setbacks, there remains optimism among investors regarding the potential growth of Bitcoin Exchange-Traded Funds (ETFs) in Hong Kong.

As a crypto investor, I’m excited about Samson Mow’s recent emphasis on the potential impact of Bitcoin Exchange-Traded Funds (ETFs) in Hong Kong. While it’s true that we might not see immediate results within the first few days, I believe that this development holds significant long-term implications for the crypto market.

The potential impact of Bitcoin ETFs in Hong Kong is significant, though it may not be immediately apparent. With limited investment options for Chinese investors currently, the introduction of these funds could lead to substantial growth over the long term.

— Samson Mow (@Excellion) April 29, 2024

Additionally, Hong Kong Bitcoin Exchange-Traded Funds (ETFs) offer distinct benefits compared to their US counterparts, particularly in the area of redemption choices.

One of the major providers of Hong Kong’s newly launched Bitcoin and Ethereum spot Exchange-Traded Funds (ETFs) has signaled that these financial instruments mark a shift toward more varied investment portfolios for Chinese investors.

The announcement made by Yimei Li, CEO of China Asset Management Co., that they will be launching new funds on Tuesday, opens up a new path for RMB holders like myself who are looking to diversify our investment portfolios.

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2024-04-30 12:10