Hong Kong's Bitcoin and Ether ETFs Garner Over $200M on Debut Day
Summary:
Bitcoin and Ether ETFs in Hong Kong pulled in over $200 million in total assets on their April 30 debut. The Bosera HashKey Spot Bitcoin and Ether ETFs netted $71.94 million, and ChinaAMC's ETFs gathered $123.61 million. Despite smaller-than-expected turnover, these are localised successes, marking Hong Kong's strategic presence as an evolving digital asset hub. However, access remains restricted to the city's residents, excluding mainland China's vast investor pool unless they hold a Hong Kong residence permit.
On their inaugural day of April 30, Bitcoin and Ether exchange-traded funds (ETFs) operating out of Hong Kong attracted in excess of $200 million in total assets. Data from Arkham Intelligence highlights that 964 Bitcoin (BTC) and 4,290 Ether (ETH) were accumulated by the Bosera HashKey spot Bitcoin and Ether ETFs, which represents $71.94 million in assets under management. On the other hand, spot Bitcoin and Ether ETFs established by ChinaAMC have garnered $123.61 million in joint assets, according to Eric Balchunas, a senior ETF analyst at Bloomberg. As at press time, there hasn't been an update from the Hong Kong Stock Exchange regarding the Harvest Global's spot Bitcoin and Ether ETFs' asset management data. The combined turnover from these two ETFs is now at $23 million. However, this value is considerably dwarfed when compared with the United States where spot Bitcoin ETFs drew nearly $4 billion in management assets during their debut week and a trading volume of $4.5 billion solely on January 12 – the first day of Wall Street trading. Balchunas advised caution in the wake of these events, but also noted that if you look at localised figures, it's quite significant. For example, ChinaAMC's Bitcoin ETF brought in $123 million on its first day making it the 6th most successful ETF launch in HK in the last three years and in the top 20% overall. Meanwhile, non-Hong Kong nationals may also participate in the ETFs after they've passed due diligence regulatory requirements, according to HashKey. Distinctively, these Hong Kong crypto ETFs allow direct subscriptions from investors using BTC and ETH. Results of a recent survey by the Hong Kong-regulated crypto exchange OSL reveal that 76.9% of those with knowledge of crypto in the city intend to invest in the spot Bitcoin and Ether ETFs. Gary Tiu, OSL’s executive director and head of regulatory affairs, said this shows cryptocurrency is gaining traction in the local economy. However, access to these ETFs is limited to the citizenry of Hong Kong, meaning mainland China's 1+ billion inhabitants cannot partake unless they have a Hong Kong residence permit.
Published At
4/30/2024 8:30:00 PM
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