According to data from the Hong Kong Stock Exchange, six new spot Bitcoin and Ethereum exchange-traded funds (ETFs) generated a trading volume of over 87.5 million Hong Kong dollars ($11.2 million) on their first day. While this is an impressive figure, it pales in comparison to the $4.6 billion trading volume achieved by 11 spot Bitcoin ETFs launched in the US in January.
China Asset Management (ChinaAMC) led the way in Hong Kong, accumulating $121.7 million in assets under management (AUM) for its spot Bitcoin ETF on the first day of trading. The company’s spot Ethereum ETF also gathered $20.4 million in AUM. Other spot Bitcoin and Ethereum ETFs managed by Harvest Global, Bosera, and HashKey also made their debut, contributing significantly to the trading volume on the Hong Kong Exchange.
Despite not reaching the levels seen in the US, the performance of Hong Kong’s spot Bitcoin and Ethereum ETFs has been positively received in the industry. Justin d’Anethan, Head of APAC Business Development at Keyrock, acknowledged that the trading volume in Hong Kong is significant considering the market dynamics, even if it is modest compared to the US ETFs’ first day.
One notable aspect of Hong Kong’s spot Ethereum ETFs is that they currently do not offer staking rewards. Livio Weng, CEO of HashKey Exchange, mentioned that fund issuers are cautiously planning to introduce staking rewards in collaboration with regulators to address regulatory risks. This limitation may be resolved in the future. Despite this restriction, the high trading volume achieved by spot Ethereum ETFs on their first day indicates a strong interest in the region’s spot Ethereum ETFs and crypto ETFs in general.
As the cryptocurrency market in Hong Kong continues to develop, discussions between fund issuers and regulators play a crucial role in shaping the outlook of cryptocurrency ETFs. While the trading volumes of spot Bitcoin and Ethereum ETFs on their first day do not match those in the US, the successful launch of these ETFs in Hong Kong, with support from China, suggests a promising direction for the adoption of cryptocurrencies in the region.
Disclaimer: The information provided in this article does not constitute investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry risks, and should conduct their own research.
