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Sujit Kumar
May 3, 2024

Hong Kong's Bitcoin Spot ETFs: A Promising Debut

Hong Kong's Bitcoin Spot ETFs
Following the launch of Bitcoin Spot ETFs in Hong Kong, Bloomberg Intelligence expert Eric Balchunas provides insights into their debut and contrasts them with trends in the US market.

A Market for Ants: Hong Kong's Spot ETFs Gain Traction

Eric Balchunas describes Hong Kong's Bitcoin Spot ETFs as a "market for ants" compared to the US funds but notes their promising start. Despite being significantly smaller, they attracted substantial inflows, countering the negative flows seen in the US market.

Surpassing Expectations: Strong First-Day Inflows

Balchunas highlights that Hong Kong's Bitcoin and Ethereum Spot ETFs raised over HK$11.2 million on their first day, contributing to the $292 million in assets observed. These impressive figures exceed initial projections, suggesting accelerated growth potential for the products in Hong Kong.

Investor Preference and Fund Performance

On the first day of trading, Ethereum spot ETFs captured 15% of the market, indicating investor interest in diversification. Interestingly, investors favored larger funds over lower fees, with the ChinaAMC BTC spot ETF leading inflows despite higher fees compared to competitors.

Clarifying Asset Calculations and US Market Trends

Responding to queries about asset calculations, Balchunas clarifies that the $292 million in assets excludes seed money contributed just before launch. In contrast, the US market typically includes seed money on the first day to inflate volume figures for marketing purposes.

US Market Outflows Amid Hong Kong's Success

While Hong Kong's ETFs thrive, the US market witnesses substantial outflows exceeding $500 million. This significant selloff contrasts with Hong Kong's positive debut, signaling divergent investor sentiment between the two regions.

Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Hong Kong's Bitcoin Spot ETFs: A Promising Debut
Sujit received his Bachelors in Science from the LNMU Darbhanga. He is currently working as a Content Strategist. He has more than three years of professional experience in information systems, security policies, technologies, and Cryptocurrency. He has published 6 books in the area of information security and assurance. He has published more than 50 research articles in leading journals Regarding the Latest and Breaking Crypto News and updates. His research interests include access control, computer forensics, Digital Marketing, Web development, business hacks, player experience, and virtual storytelling.