Newly Released Hong Kong Crypto ETFs Fail to Outshine US Funds on First Day of Trading with $200 Million Inflows

What a difference a day makes, twenty-four little hours… well, actually just about six hours – that’s how long the Hong Kong Stock Exchange was open yesterday and trading the brand-new Spot Bitcoin and Ethereum ETFs in the local market.

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But so far, pundits are a little disappointed by the trading volume. Data from Arkham Intelligence shows that the Bosera HashKey funds brought in 964 BTC and 4,290 ETH which is worth US$58.24 million (AU$90 million) and US$12.88 million (AU$19.9 million) respectively.

Bloomberg Senior ETF analyst Eric Balchunas said ChinaAMC brought in US$123.61 million (AU$190.98 million) combined. He commented on the initial performance of the pair, noting that while their trading volumes and assets were significantly lower than those in the US, adjusting for market size tells a different story.

When scaled for market size, these figures would be equivalent to US$25 billion (AU$38.62 billion) and US$1.6 billion (AU$2.47 billion) in the US market, he said. According to Balchunas, the China AMC bitcoin ETF has become one of the top ETFs in its market after just one day.

Despite Hong Kong’s market being much smaller than the US’s, the ETFs launched during a period when US inflows are slowing, and the US$141 million+ inflows in Hong Kong are expected to more than compensate for the slight negative flows in the US.

Analyst: ETFs Will Enhance Global Crypto Integration

Swyftx Lead Market Analyst Pav Hundal told Crypto News Australia that assessing Hong Kong’s new ETFs based on just their first day’s performance overlooks their strategic role.

I get that some people are disappointed, but assessing the success of Hong Kong’s new ETFs based solely on their first day’s performance misses the forest for the trees. The true value lies in their long-term impact on market accessibility for blue-chip assets like Bitcoin and Ether.

Pav Hundal

He added that the funds are crucial elements aimed at promoting the adoption and incorporation of crypto into a broader financial framework.

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These ETFs are strategic building blocks, designed to foster broader acceptance and deeper integration of cryptocurrencies into the global financial system. They are instrumental in paving the way for widespread adoption of digital currencies, setting the stage for a more inclusive landscape.

Pav Hundal