Hong Kong Bitcoin ETFs Debut with Disappointing Trading Volumes
The launch of Hong Kong’s first Bitcoin and Ether exchange-traded funds (ETFs) saw a disappointing trading volume of HK$87.5 million ($11.2 million) on their first day of trading. This figure pales in comparison to the $4.6 billion achieved by similar ETFs in the United States. Despite the low trading volumes, industry experts remain optimistic about the long-term prospects of cryptocurrency ETFs in Hong Kong.
The six newly introduced ETFs, managed by China Asset Management, Harvest Global, Bosera, and HashKey, failed to attract significant trading volumes on their debut. The China Asset Management Bitcoin ETF recorded the highest trading volume of HK$37.16 million, while the Ether ETF trailed behind with HK$12.66 million in volume. Other ETFs, such as the Bosera HashKey Bitcoin ETF and the Bosera HashKey Ether ETF, saw even lower trading volumes.
Justin d’Anethan, head of APAC business development at Keyrock, acknowledged the lower figures compared to the US launch but emphasized the positive aspect of decent buy-in considering Hong Kong’s market dynamics. He noted that while the volumes didn’t match those of the US, it’s a major step forward for the region.
The lackluster debut of the Hong Kong ETFs coincided with a broader downturn in the cryptocurrency market, with Bitcoin’s price dipping below $60,000. Despite the setback, issuers are expecting approximately $300 million in combined first-day inflows for the new Hong Kong spot-crypto ETFs. Industry experts believe that interest in digital assets will continue to grow in Hong Kong, despite initial challenges in trading volume and market volatility.
Overall, the launch of ETFs in Hong Kong signals a growing interest in digital assets, and while the initial trading volumes may have been disappointing, there is optimism for the future of cryptocurrency ETFs in the region.
