Bitcoin and Ethereum ETFs Launch in Hong Kong
30 Apr, 2024 ● Crypto News
The introduction of spot Bitcoin exchange-traded funds (ETFs) in the United States set a high standard that was challenging for the newly launched Bitcoin and Ethereum ETFs in Hong Kong, which saw $12 million in trading volume.
Despite the debut of spot Bitcoin and Ether ETFs on the Hong Kong markets, their trading volumes indicate that matching the United States' initial success with spot Bitcoin ETFs is a tall order.
On their first day, the six new crypto ETFs in Hong Kong totaled 87.58 million Hong Kong dollars ($12 million) in trading volume, a figure that significantly lags behind the U.S. spot Bitcoin ETFs' first-day trading volume of $4.6 billion.
The Hong Kong Stock Exchange (HKEX) reported a subdued performance and interest in the six spot Bitcoin and Ether ETFs managed by companies such as China Asset Management, Harvest Global, Bosera, and HashKey.
The Bosera HashKey Bitcoin ETF saw a trading volume of 249,000 HK$ on its first day, and the Bosera HashKey Ether ETF ended the day with a trading volume of 99,000 HK$.
The China Asset Management (CAM) Bitcoin ETF performed notably better, achieving 4.6 million HK$ in trading volume.
It opened trading at 8.080 HK$ and closed at 7.950 HK$. The CAM Ether ETF also reached a trading volume of 4.6 million HK$ by day's end.
Wu Blockchain had previously reported that the subscription size for CAM’s spot Bitcoin and Ethereum ETFs attracted $140 million during the initial offering period before trading started.
Earlier, HKEX had pointed out strong investor interest in its cryptocurrency futures ETFs launched in late 2022.
Its three “VA Futures ETFs” drew $529 million in net inflows in the first quarter of 2024, underscoring the excitement surrounding the April 30 launch of the spot BTC and ETH ETFs.
According to the South China Morning Post, local fund managers and brokerages are waiving fees to attract investors to the new crypto ETFs.
Harvest is eliminating its management fee for six months, while Borsera is not charging its management fee for four months.
The report also suggested that investors from mainland China might have access to these new offerings, though KYC procedures involving mainland Chinese identity cards could pose a challenge.
Sources:
https://cointelegraph.com/news/hong-kong-bitcoin-eth-etfs-12m-first-day-trading
https://www.hkex.com.hk/News/News-Release/2024/240430news?sc_lang=en
