HK Fund Notes Debut Despite BTC Recovery
Hong Kong Bitcoin (BTC) and Ethereum (ETH) ETFs suffered a setback despite optimism in the crypto community. One of the newly launched Hong Kong Bitcoin ETFs recorded a negative flow on Monday, May 6. Meanwhile, other Hong Kong crypto ETFs did not witness any inflow even as Bitcoin price crossed $65,000.
Hong Kong Bitcoin and Ethereum ETF Flows
According to Farside UK, the China AMC Bitcoin ETF recorded a significant outflow of $4.9 million on Monday. Other HK Bitcoin and Ethereum ETFs witnessed “zero” flows. Additionally, the total trading volume of the six Hong Kong crypto ETFs was only $7.72 million, a decrease from last week’s figures.
However, Hong Kong BTC and ETH ETFs made a remarkable debut last week. Hong Kong’s newly launched Spot Bitcoin ETFs have made a splash, generating a whopping $260.9 million in assets under management (AUM) in the opening week alone. Additionally, total crypto ETF AUM exceeded $311 million.
China AMC was at the forefront of this race, generating an impressive $127.1 million in revenue. The institution was followed by Harvest Global Investment with an AUM of $69.5 million. Additionally, Bosera International and HashKey Capital also attracted attention, collectively raising $64.3 million in AUM through their ETFs.
Ethereum ETF AUM was much less than its BTC counterparts. According to recent reports, Hong Kong Spot Ethereum ETFs attracted an AUM of $50.6 million in the first week of trading. It is also worth noting that despite the recent outflows, Hong Kong ETFs managed to raise over 4,200 BTC within a few days of launch.
Also Read: Tiger Brokers Introduces Crypto Trading Platform, Praises Support for BTC, ETH and Others
Analyst Says HK ETFs Are Extremely Important for Local Investors
Bloomberg’s Senior ETF analyst Eric Balchunas provided insight into the recent launch of the Bitcoin and Ethereum ETF in Hong Kong. He reaffirmed that their importance is on par with that of the United States. Balchunas emphasized that although Hong Kong Bitcoin ETFs cannot compete with their US counterparts, they still have significant weight in their local markets.
He emphasized that despite the lower figures, the $310 million invested in Hong Kong ETFs equates to approximately $50 billion in the US market, making them proportionately important. This response was in response to a comment from Farside Investors, who found the development not that significant.
While sharing the Hong Kong Bitcoin and Ethereum ETF flow report, they wrote: “In our view, the launch of Bitcoin and Ethereum ETFs in Hong Kong is a much less significant moment than that of US ETFs. However, due to a lot of demand, we launched the HK ETF Flow dashboard.”
Also Read: Bitcoin Sleeping Whale Shifts $44 Million BTC As Price Crosses $64 Lakh
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