Hong Kong launched six bitcoin and spot ether exchange-traded funds (ETFs) on Tuesday (April 30), in a historic move to the Asian cryptocurrency market.
The ETFs, issued by China Asset Management (ChinaAMC), Bosera Asset Management and Harvest Global Investments, allow traditional investors to gain exposure to Bitcoin and Ethereum in their portfolios without having to purchase the coins themselves.
Data from the Hong Kong Stock Exchange (HKEX) showed that the six ETFs recorded a combined trading volume of 49.4 million Hong Kong dollars (6.3 million US dollars) during the morning session of their first day of trading. ChinaAMC’s Bitcoin ETF leads the pack with turnover of HK$22.97 million, followed by its Ether ETF with HK$10.47 million.
When Spot Bitcoin ETFs began trading in the US in January, their daily turnover reached $4.6 billion on the first trading day. In comparison, ChinaAMC said its subscription amount during the initial offering period was HK$1.1 billion (US$140.5 million), of which HK$950 million was Hong Kong for its Bitcoin product and HK$160 million for ether ETF, reports The block.
Hong Kong’s Ethereum ETF sets it apart from the US
Hong Kong’s approval of Ethereum ETFs sets it apart from the United States, where the Securities and Exchange Commission (SEC) has yet to approve one due to lingering questions over whether Ethereum should be considered a security or not.
It’s still early days for new Hong Kong ETFs and experts say the growth potential is significant. Tongli Han, CEO of Harvest Global Investments, said CNBC: “The market potential is twice that of our American counterparts,” adding that he expects slow growth at first as many Asian investors prefer to look to the sidelines before investing.
Meanwhile, Bitcoin prices saw a significant drop on the same day, falling from over $68,000 to $61,900 in 24 hours – a 9% drop and the biggest drop since the collapse of the FTX exchange in November 2022. Factors contributing to the price decline include cash outflows. spot ETFs following Bitcoin, with a record $326 million net outflow from spot ETFs on Tuesday.
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