Hong Kong’s ETF Debut Disappoints Amid Ongoing Market Turmoil
Hong Kong’s newly launched exchange-traded funds (ETFs) for Bitcoin and Ethereum have failed to generate significant interest, unlike their counterparts in the United States. The trading volume for these ETFs in Hong Kong amounted to just $11.2 million, in stark contrast to the impressive $4.6 billion achieved by the inaugural trading of 11 Bitcoin ETFs in the US.
Data from the Hong Kong Stock Exchange reveals that the performance of the six Bitcoin and Ethereum ETFs managed by China Asset Management, Harvest Global, Bosera, and HashKey was relatively lackluster following their launch. The Bosera HashKey Bitcoin ETF only saw a trading volume of $249,000 on the first day, while the Bosera HashKey Ether ETF recorded $99,000 at the closing bell. The China Asset Management (CAM) Bitcoin ETF fared slightly better with a trading volume of $4.6 million, and the CAM Ether ETF had a similar trading volume of $4.6 million.
Compared to the first-day trading volume of US-based Bitcoin ETFs, which amounted to $655 million, the total trading volume in Hong Kong’s new ETFs is considerably lower. Since their launch on January 11, nearly a dozen Bitcoin ETFs in the US have attracted almost $12 billion in investor funds. However, recent inflows have slowed, contributing to a stall in Bitcoin’s upward momentum.
Bitcoin started last week with positive momentum, briefly surpassing $67,000. However, it failed to sustain this upward trend and started losing value, hitting a low of $60,700 on Monday. Despite a brief recovery to $64,800, Bitcoin faced another setback, struggling to sustain any rally. This downturn in Bitcoin’s price also impacted the broader crypto market, with the total market capitalization dropping 3% over the last 24 hours to $2.24 trillion.
Currently trading at $61,207, Bitcoin has shown a slight decrease in price over the last 24 hours. Despite this decline, the trading volume has surged by 39%, reaching a market capitalization of $1.2 trillion, as reported by Coinpedia.