Hong Kong’s Bitcoin and Ethereum ETFs debut with lower-than-expected trading volume.
Market participants feel that Hong Kong ETFs will still have a substantial impact on the market, nonetheless.
According to Hong Kong Stock Exchange data, Bitcoin and Ethereum exchange-traded funds (ETFs) debuted with small trading volumes of 87.58 million HKD, or $11.19 million.
The trading volume falls short of the issuers’ early estimates, which were for volumes above $100 million. Moreover, the trade volume
It pales in comparison to the US debut, when the 11 spot Bitcoin ETF products generated $4.6 billion in trading activity.
How They Performed
The initial trading day featured six new spot Bitcoin and Ethereum ETFs from China Asset Management, Harvest Global, Bosera, and HashKey.
According to HKEX data, China Asset Management’s “ChinaAMC Bitcoin ETF” had the highest trading volume, totaling HK$37.16 million during the debut trading session. Its Ether ETF also had the largest volume among Ethereum-based ETFs, at HK$12.66 million.
Notably, Wu Blockchain claimed that China Asset Management’s Initial Offering Period scale was HK$1.1 billion, equivalent to around $142 million for both products. The Bitcoin ETF is valued at HK$950 million, while the ETH ETF is worth HK$160 million.
Other issuers reported HK$17.89 million, including Harvest’s spot Bitcoin ETF, and HK$4.95 million for the Ether ETF. Similarly, the Bosera HashKey Bitcoin ETF posted a volume of HK$12.44 million, while the ETH ETF reported HK$2.48 million.
These ETFs targeted international investors who followed local compliance norms. By taking this method, the corporations hoped to broaden their investor base, increase liquidity, and improve market stability. Consequently, these ETFs were accessible in a variety of currencies.
comprising Hong Kong dollars (HKD), US dollars, and Chinese Renminbi (RMB).
Despite low trade volume, stakeholders expect a substantial market impact. Gabor Gurbacs, the creator of the crypto-related company PointsVille, said:
“The East-West Bitcoin ETF battle is intensifying. Hong Kong would not introduce Bitcoin ETFs without Chinese approval. China is determined to compete on institutional Bitcoin capabilities. “Full nation state adoption game theory is in effect.”‘