The recent launch of Bitcoin and Ethereum ETFs in Hong Kong has attracted widespread attention. However, these new additions seem insufficient to counter the selling pressure from US ETFs.
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Trading volume in Hong Kong is far lower than in the US
Inflows affected by Hong Kong ETFs are relatively small
Industry hopes for imitation in other countries
The debut of the Hong Kong spot Bitcoin ETF was overshadowed by significant selling activity from similar funds in the US.
On the first day of trading for Hong Kong ETFs, including BTC and ETFs, the trading volume was only slightly over 12 million US dollars, compared to 4.6 billion US dollars on the first day of US ETFs. This reflects the relatively smaller scale of the Hong Kong market. On May 2nd, the trading volume was 33.14 million Hong Kong dollars (4.24 million US dollars), and the stock prices of both ETFs fell by more than 7%.
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The trading volume of Hong Kong cryptocurrency ETFs is significantly different from that of the US, with Huaxia Fund having the highest market share among the six ETFs.
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CoinShares researcher
The net inflow of ETFs is estimated based on the net asset flow of the Hong Kong Stock Exchange over the past week: 217 million US dollars. In just two days, April 30th and May 1st, US ETFs saw outflows of 160 million US dollars and 560 million US dollars, respectively.
Market analysts believe that although Hong Kong’s ETFs represent a crucial moment, their current impact is limited. Industry insiders are hopeful for the peripheral influence: James Wo, CEO of DFG, stated that as other Asian markets may emulate Hong Kong’s approach, these ETFs may facilitate long-term price increases.
Although Hong Kong’s entry into the cryptocurrency ETF market is historically significant, its immediate effects have not been as transformative as some had hoped. The continued dominance of US ETFs and the inherent volatility of the cryptocurrency market suggest that the community should balance their expectations with cautious optimism. As the global financial technology landscape continues to evolve, these diverse market interactions will undoubtedly play a key role in shaping the future trajectory of cryptocurrency prices.
ETF
US
Hong Kong
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Stablecoin Bill Set to Pass! US Treasury Secretary Yellen: Strengthen Regulation of Stablecoin Issuers, Establish Federal Standards