Launch of Bitcoin ETFs in Hong Kong better than expected after all?
The first day of trading of the Bitcoin and Ethereum spot ETFs on the Hong Kong Stock Exchange looked like a major disappointment due to the low trading volume of only around USD 12 million. The reaction of the Bitcoin price also suggested that market participants had expected greater demand.
Now, however, the inflows into the three Bitcoin and three Ethereum ETFs have been published and these are more likely to indicate a great success.
We just put out note with final data (which doesn't come in as fast as US). In short, HK saw $292m in assets on Day One (we predicted $1b in two years so way ahead of schedule but corrections can derail trajectories as we seeing in US). Ether ETFs grabbed 15% of pie and size
... https://t. Eric Balchunas (@EricBalchunas) May 2, 2024
With just under USD 300 billion in inflows into the investment products, Hong Kong ETFs have actually exceeded even well-founded expectations. In a webinar, Rebecca Sin from Bloomberg Intelligence predicted the 300 million US dollars for the entire first month.
ETF expert Eric Balchunas explained the discrepancy between the high investment volumes of the ETFs and the low trading volume by the fact that the issuers had already collected capital before the official start of trading.
If the Bitcoin ETFs from Hong Kong continue to collect so much capital, they could possibly cushion the heavy selling pressure from their US counterparts. The latter set a negative record on yesterday's trading day.
