Fun

Hong Kong spot Bitcoin and Ether ETFs struggle to gain traction

News Feed - 2024-05-07 01:05:28

Zhiyuan Sun7 hours agoHong Kong spot Bitcoin and Ether ETFs struggle to gain tractionThe exchange-traded funds only managed to attract around $22.5 million in inflows during their first week of launch.1577 Total views2 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksHong Kong’s spot Bitcoin exchange-traded funds (ETFs) are far underperforming their United States counterparts in the first week of launch. 


According to data compiled by Farside Investors, the three spot Bitcoin (BTC) ETFs that launched on April 30 in the East Asian city have attracted a total of $262 million in assets under management (AUM), the vast majority of which was subscribed to before the listing. Meanwhile, their asset inflows amounted to less than $14 million in the first week of launch, far below the billions that flowed into U.S. spot Bitcoin ETFs in January. Hong Kong crypto ETFs have only attracted a fraction of assets compared to their U.S. counterparts. Source: Farside


“In our view, the launch of the Bitcoin and Ethereum ETFs in Hong Kong, is a far less significant moment that the US ETFs,” Farside Investors commented. Meanwhile, Hong Kong spot Ether (ETH) ETFs, the first of their kind in the world, also did not impress, with a cumulative $54.2 million in AUM and $9.3 million in total inflows as of May 6. 


The Hong Kong spot crypto ETFs were seen as significant improvements to their U.S. counterparts. They are denominated in three fiat currencies and feature in-kind transfers so investors can buy and redeem ETF units directly via Bitcoin or Ether. 


“As we advised, don’t expect big numbers in HK vs the US,” wrote senior Bloomberg ETF analyst Eric Balchunas regarding the results. “But.. the the HK ETFs at $310m is equal to $50b in the US market. So in that regard, these ETFs are already as big to their local mkt as US ones are to its,” he added. 


The Hong Kong equities sector is relatively small, with a total market cap of $4.5 trillion compared to $50 trillion worth of listed equities across all U.S. exchanges. The Hong Kong equities sector is also far more illiquid due to slower economic growth in mainland China since 2022. 


In a recent study, crypto exchange OSL found that nearly 80% of crypto-savvy investors in Hong Kong plan to invest in the new spot Bitcoin and Ether ETFs. The assets, however, are currently not accessible to mainland Chinese investors unless they also possess Hong Kong residency. “Mainland Chinese RMB investors are not allowed to purchase, and incremental funds may be limited, resulting in low transaction volume,” commented researchers at SoSoValue, who added: “This Hong Kong cryptocurrency ETF still has strict restrictions on investor qualifications, and mainland investors cannot participate in transactions. Taking Futu Securities as an example, the account holder is required to be a non-resident of mainland China and the United States before trading can be conducted. The market expects mainland funds to be traded through southbound Hong Kong Stock Connect, which is currently not allowed and is expected to be difficult to open for a long time.”


SoSoValue researchers also noted that after an initial teaser fee period, the management fees of Hong Kong crypto ETFs range from 0.85% to 1.99% annually, far above the 0.25% average annual management fees charged by U.S. issuers. “Due to the fee difference, for institutional investors who are optimistic about the crypto market and want to hold it for a long time, the holding cost of the U.S. Bitcoin ETF is lower,” SoSoValue said. 


Related: Hong Kong Bitcoin, Ether ETFs attract over $200M on day 1# Bitcoin# Cryptocurrencies# Hong Kong# Investments# Bitcoin ETF# AdoptionAdd reaction

News Feed

Bitcoin, Ethereum Technical Analysis: BTC Falls to $20,000 Range, as Sell-Off Extends
Bitcoin, Ethereum Technical Analysis: BTC Falls to $20,000 Range, as Sell-Off Extends Bitcoin declined for an eighth consecutive session on Tuesday, as the crash in crypto markets
Bitcoin Market Cap to surpass gold—Anthony Scaramucci
Vince Quill4 hours agoBitcoin Market Cap to surpass gold—Anthony ScaramucciBitcoin currently has a market capitalization of roughly $1.3 trillion, while the entire crypto market cap is roughly $2.4 trillion.996 Total v
Trial Back on After Craig Wright Breaks Bitcoin Settlement Agreement
Australian-born technologist Craig Wright has attested that he cannot finance his court settlement negotiated with the Kleiman estate. According to a court document filed in the Sou
Bitcoin․com Exchange Market Insights Report for April 2022
Bitcoin․com Exchange Market Insights Report for April 2022 This is the inaugural monthly market insights report byBitcoin.com Exchange. In this and subsequent reports, expect to
Following BTC’s Price Drop, Bitcoin Miners Benefit From a 2.35% Difficulty Reduction
Following BTC"s Price Drop, Bitcoin Miners Benefit From a 2.35% Difficulty Reduction During the past week, Bitcoin’s hashrate has dropped a few percentages after reaching 28
13,000 BTC Moved in 20 Months — 2010 Mystery Miner Transfers Another String of 20 Decade-Old Block Rewards
13,000 BTC Moved in 20 Months — 2010 Mystery Miner Transfers Another String of 20 Decade-Old Block Rewards Two days ago on November 10, a mystery whale transferred 20 block rewar
Trudeau Criticizes Opponent’s Crypto Advice, Kiyosaki Pushes the Assets Ahead of the ‘Biggest Economic Crash in History’ — Bitcoin.com News Week in Review
Trudeau Criticizes Opponent"s Crypto Advice, Kiyosaki Pushes the Assets Ahead of the "Biggest Economic Crash in History" — Bitcoin.com News Week in Review Canadian Prime Minister
While Global Markets Get Spooked by Covid and a Hawkish Fed, Stocks and Crypto Rebound After Musk Buys Twitter
While Global Markets Get Spooked by Covid and a Hawkish Fed, Stocks and Crypto Rebound After Musk Buys Twitter Wall Street suffered Monday morning as the major U.S. stock indexes d
Crypto ETFs to hit ‘model portfolios’ toward year end — BlackRock
Martin Young5 hours agoCrypto ETFs to hit ‘model portfolios’ toward year end — BlackRock“Investors really want to get their ETH exposure,” said BlackRock’s ETF investment chief Samara Cohen.1790 Total views2
Trump Signs Deregulation Order to Boost US Economic Recovery
Trump Signs Deregulation Order to Boost US Economic RecoveryU.S. President Donald Trump has signed an executive order to eliminate “unnecessary regulations that impede economi
Arijit Sarkar2 hours agoSingapore to restrict retail crypto speculation with new rulesAccording to MAS, speculative cryptocurrency trading is partly fueled by unverified success stories, celebrity endorsements and FOMO o
Russian Appellate Court Cancels Decision to Block Tor Project’s Website
Russian Appellate Court Cancels Decision to Block Tor Project’s Website A court of appeals in Russia has overturned a ruling by a regional court which allowed the blocking of the