Hong Kong Bitcoin & Ethereum ETFs Experience Setback Despite Optimism
Are Hong Kong Bitcoin and Ethereum ETFs facing a setback? Despite the excitement in the crypto community, recent reports show that one of the newly launched Hong Kong Bitcoin ETFs experienced a negative flow on Monday, May 6. Additionally, other Hong Kong crypto ETFs did not witness any flows despite the Bitcoin price surpassing $65,000.
According to Farside UK, the China AMC Bitcoin ETF saw a significant outflow of $4.9 million on Monday, while other Hong Kong Bitcoin and Ethereum ETFs saw zero flows. This resulted in a total trading volume of only $7.72 million for the six Hong Kong crypto ETFs, a decrease from the previous week.
However, the Hong Kong Bitcoin and Ethereum ETFs made a strong debut last week, attracting a total of $260.9 million in assets under management within their first week. The total crypto ETF AUM exceeded $311 million, with China AMC leading the race with $127.1 million in AUM. Harvest Global Investment followed with $69.5 million, and Bosera International and HashKey Capital collectively amassed $64.3 million in AUM.
Although the Ethereum ETFs had lower AUM compared to the Bitcoin counterparts, the Hong Kong Spot Ethereum ETFs still attracted $50.6 million in the first week of trading. Despite recent outflows, the Hong Kong ETFs managed to acquire over 4,200 BTC shortly after launch.
Senior ETF analyst at Bloomberg, Eric Balchunas, highlighted the significance of Bitcoin and Ethereum ETFs in Hong Kong, stating that they hold considerable weight within the local market, similar to those in the United States. While the Hong Kong ETFs may not reach the scale of their US counterparts, the $310 million invested in them is equivalent to approximately $50 billion in the US market, making them proportionately significant.
In response to opinions that the launch of Bitcoin and Ethereum ETFs in Hong Kong is not as significant as in the US, Farside Investors introduced an HK ETF Flow dashboard to track the flows in the market. Despite differing viewpoints, the debut of Hong Kong Bitcoin and Ethereum ETFs has certainly garnered attention and sparked discussions within the crypto community.
