Bitcoin ETFs in Hong Kong have also shown strong performance.
By Chimamanda U. Martha
Edited by Julia Sakovich
Updated
3 mins read
On Tuesday, May 21, Ethereum exchange-traded funds (ETFs) in Hong Kong experienced their highest daily inflow since its launch on April 30, 2024. One of the newly launched investment products managed by Chinese fund manager ChinaAMC recorded net inflows of over HK$3.77 million alone while others trailed behind with substantial inflows as well.
The Hong Kong government had approved the launch of both Bitcoin and Ethereum spot ETFs to allow traders to invest in the crypto market without directly facing the volatility associated with digital assets.
However, since their introduction, Bitcoin spot ETFs have been more popular, consistently drawing substantial daily inflows compared to their Ethereum counterparts.
On Monday, none of the three Ethereum ETFs managed by ChinaAMC, Harvest Global, Bosera, and HashKey Capital saw any inflows, meaning no investors purchased the funds in any of the listed marketplaces.
On Tuesday, the newly launched Ethereum ETFs saw a turnaround as investors began accumulating the funds.
ChinaAMC’s ETF alone saw more than 1.28 million shares traded, compared to its average of 500,000. According to the South China Morning Post, citing data from the Hong Kong stock market, the other two Ethereum ETFs also saw their net inflows increase by 18% on Tuesday.
This positive trend continued into Wednesday, with the three funds generating around HK$5 million in the early hours of the day.
The surge in interest in Hong Kong Ethereum ETFs could be attributed to speculation that the United States Securities and Exchange Commission (SEC) may approve the trading of Ethereum ETFs.
The SEC approved the trading of Bitcoin ETFs in January 2024, making history as the first country to do so.
Reports suggest that the SEC had asked issuers to amend their applications to meet the requirements for introducing such offerings to the US market. Despite this optimism, Hong Kong remains the only country in the world that has approved the sale of both Bitcoin and Ethereum ETFs.
Bitcoin ETFs in Hong Kong have also shown strong performance. On their opening day, April 30, both Bitcoin and Ethereum ETFs recorded over HK$87.5 million ($11.2 million) in trading volume.
However, this figure is still modest compared to the $4.6 billion generated by Bitcoin ETFs in the United States on their opening day.
This week, Bitcoin ETFs in Hong Kong continued to report significant inflows. On Monday, the investment products recorded positive inflows of around $6.62 million.
The total amount of Bitcoin (BTC) held by the issuers now amounts to 3,660 after only 13 days of trading.
Additionally, the total net assets of these funds now stands at around $246 million with a total value traded of $2.78 million.
The ETFs managed by both Bosera and HashKey lead the Monday inflow. The funds topped the chart with $6.29 million (95 BTC), followed by China AMC with $7.09k (0.11 BTC), and Harvest with $321K (4.85 BTC).
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Chimamanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging perspective to her work.
