Hong Kong's Bitcoin Spot ETFs: A Promising Debut
Table of contents
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.