According to data from the Hong Kong Stock Exchange, six newly launched spot Bitcoin and Ethereum exchange-traded funds (ETFs) generated over 87.5 million Hong Kong dollars ($11.2 million) in trading volume on their first day. While this achievement is impressive, it falls short when compared to the $4.6 billion trading volume generated by 11 spot Bitcoin ETFs launched in the US in January.
China Asset Management (ChinaAMC) took the lead in Hong Kong’s ETF market, accumulating $121.7 million in assets under management (AUM) for its spot Bitcoin ETF on the first trading day. 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 made their debut, significantly contributing to the overall trading volume on the Hong Kong Exchange.
Despite not reaching the same levels as the US spot Bitcoin ETFs, the performance of Hong Kong’s spot Bitcoin and Ethereum ETFs is still viewed positively in the industry. Justin d’Anethan, Head of APAC Business Development at Keyrock, acknowledged that while the trading volume on the first day may seem modest compared to the US ETFs, it is significant given the market dynamics in Hong Kong.
One notable aspect of Hong Kong’s spot Ethereum ETFs is that they do not currently offer staking rewards. Livio Weng, CEO of HashKey Exchange, explained that fund issuers are cautiously planning to introduce staking rewards in collaboration with regulators to address perceived regulatory risks. This limitation may be resolved in the future. Despite this restriction, the trading volume achieved by spot Ethereum ETFs on their first day indicates a high level of 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 future of cryptocurrency ETFs. Although 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 should not be considered as investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry inherent risks. It is recommended that investors conduct their own research before making any investment decisions.
