Hong Kong’s introduction of Bitcoin and Ethereum exchange-traded funds (ETFs) began with moderate trading volumes, amounting to 87.58 million HKD, approximately $11.19 million, according to data from the Hong Kong Stock Exchange.
This trade volume falls considerably shy of the issuers’ initial projections, which foresaw volumes exceeding $100 million. Furthermore, the trading volume is significantly lower compared to the debut in the United States, where 11 spot Bitcoin ETF products saw a trading volume of $4.6 billion.
Crypto ETF Debut in Hong Kong Performance Overview
The first trading day Crypto ETF Debut in Hong Kong showcased six newly launched spot Bitcoin and Ethereum ETFs issued by China Asset Management, Harvest Global, Bosera, and HashKey.
Per Hong Kong Stock Exchange data, China Asset Management’s “ChinaAMC Bitcoin ETF” led in trading volume, amassing HK$37.16 million in turnover during the initial trading session. Its Ether ETF also attained the highest volume among the Ethereum-based ETFs with a turnover of HK$12.66 million.
Significantly, Wu Blockchain indicated that China Asset Management’s Initial Offering Period scale was HK$1.1 billion, valued at roughly $142 million for both products. The Bitcoin ETF was valued at HK$950 million, while the ETH ETF was valued at HK$160 million.
Other issuers such as Harvest’s spot Bitcoin ETF recorded HK$17.89 million, while the Ether ETF accumulated HK$4.95 million. Similarly, the Bosera HashKey Bitcoin ETF reported a turnover of HK$12.44 million, and the ETH ETF stood at HK$2.48 million.
These ETFs targeted international investors adhering to local regulatory standards. By employing this strategy, the companies aimed to broaden the investor base, enhance liquidity, and strengthen market stability. Consequently, these ETFs were accessible in various currencies, including Hong Kong dollars (HKD), US dollars, and China’s Renminbi (RMB).
Despite the subdued trading volume Crypto ETF Debut in Hong Kong, stakeholders anticipate a significant market impact. Gabor Gurbacs, founder of crypto-related firm PointsVille, commented:
“The East-West Bitcoin ETF competition is intensifying. Hong Kong wouldn’t launch Bitcoin ETFs without China’s endorsement. China is committed to competing in institutional Bitcoin capabilities. Full nation-state adoption game theory is in play.”