Hong Kong Bitcoin and Ether ETFs have tough debut on first-day trading
Gareth Jenkinson14 hours agoHong Kong Bitcoin and Ether ETFs have tough debut on first-day tradingSpot Bitcoin and Ethereum ETFs have started trading in Hong Kong, but day-one trading volumes were a fraction of those recorded in the United States in January 2024.8333 Total views12 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksThe launch of spot Bitcoin exchange-traded funds (ETFs) in the United States has proved hard to follow as Hong Kong’s new Bitcoin and Ethereum ETFs hit $12 million in trading volume.
Spot Bitcoin (BTC) and Ether (ETH) ETFs finally hit Hong Kong markets, but trading volumes suggest that the launch of spot Bitcoin ETFs in the United States set an exceptionally high bar to match.
The six new crypto ETFs’ total trading volume at the closing bell on day one in Hong Kong was 87.58 million Hong Kong dollars ($12 million). This number pales compared to the first-day trading volume of U.S. spot Bitcoin ETFs, valued at $4.6 billion.First-day trading of Bitcoin and Ethereum spot ETFs on the Hong Kong Stock Exchange. Source: HKEX
Data shared by the Hong Kong Stock Exchange (HKEX) highlighted the relatively flat performance and interest in the six spot Bitcoin and Ether (ETH) ETFs managed by China Asset Management, Harvest Global, Bosera and HashKey.
The Bosera HashKey Bitcoin ETF recorded 249,000 HK$ in first-day trading volume, while the Bosera HashKey Ether ETF produced 99,000 HK$ in trading volume at the closing bell.
Related: Hong Kong Bitcoin and Ether ETFs officially approved to start trading on April 30
The China Asset Management (CAM) Bitcoin ETF fared far better, seeing 4.6 million HK$ in trading volume. Trading had opened at 8.080 HK$ and closed at 7.950 HK$. CAM’s Ether ETF recorded 4.6 million HK$ in trading volume by the closing bell.
Wu Blockchain had previously reported that CAM subscription size for its spot Bitcoin and Ethereum ETFs attracted $140 million during the initial offering period before trading began.
HKEX previously highlighted investor interest in its cryptocurrency futures ETFs, which were first launched in late 2022. Its three “VA Futures ETFs” attracted $529 million in net inflows in the first quarter of 2024 - adding to the hype around the spot BTC and ETH ETFs launch on April 30.
The South China Morning Post reported that local fund managers and brokerages are offering fee exemptions in an attempt to draw investors to the new crypto ETFs.
Harvest is waiving its management fee for six months while Borsera has forgone its management fee for four months.
The publication also intimated that investors in mainland China could potentially have access to the newly launched products. However, this could be mitigated by KYC policies relating to mainland Chinese identity cards.
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