Hong Kong launched six spot bitcoin and ether exchange-traded funds (ETFs) on Tuesday (Apr 30) in a historic move for the Asian cryptocurrency market.
The ETFs, issued by China Asset Management (ChinaAMC), Bosera Asset Management, and Harvest Global Investments, allow mainstream investors to get exposure to Bitcoin and Ethereum in their portfolios without actually having to buy the coins themselves.
Data from the Hong Kong Stock Exchange (HKEX) showed that the six ETFs recorded a combined trading volume of HK$49.4 million (US$6.3 million) during the morning session on their first trading day. ChinaAMC’s Bitcoin ETF led the pack with HK$22.97 million in turnover, followed by its Ether ETF with HK$10.47 million.
When spot bitcoin ETFs began trading in the U.S. in January, their daily turnover reached $4.6 billion on the first trading day. In comparison, ChinaAMC said that its subscription size during the initial offering period amounted to HK$1.1 billion (US$140.5 million), with HK$950 million for its Bitcoin product and HK$160 million for the ether ETF, reports The Block.
Hong Kong’s Ethereum ETF sets it apart from USA
Hong Kong’s approval of Ethereum ETFs sets it apart from the U.S., where the Securities and Exchange Commission (SEC) has yet to approve one due to ongoing questions surrounding whether Ethereum should be considered a security or not.
It’s still early days for Hong Kong’s newest ETFs and experts claim the growth potential is significant. Harvest Global Investments CEO Tongli Han told CNBC: “The market potential is double the size of that of our U.S. counterparts,” adding he expects slow growth initially as many Asian investors prefer to watch from the sidelines before investing.
Meanwhile, Bitcoin prices experienced a significant drop on the same day, falling from over $68,000 to $61,900 within 24 hours – a 9% decline and the steepest dip since the collapse of the FTX exchange in November 2022. Factors contributing to the price drop include outflows from spot ETFs tracking Bitcoin, with a record net outflow of $326 million from spot ETFs on Tuesday.
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