Investors are anticipating that similar products may soon be approved in the United States. In comparison to the US market, the cryptocurrency market in Hong Kong is still relatively small.
By midday on Wednesday, the spot ether exchange-traded funds (ETFs) established by ChinaAMC, a Chinese fund manager, experienced a daily influx of nearly HK$5 million (US$640,780), which is a significant increase. This follows Tuesday’s record-breaking inflow of HK$3.77 million, the highest since the ETF’s launch. The speculation of comparable products being approved in the US has resulted in an upswing in investment activity.
This signifies a pivotal moment in the development of the cryptocurrency market in Hong Kong, as the daily inflow into Ether ETFs has reached its highest point since its debut. Bitcoin exchange-traded funds (ETFs) in Hong Kong also observed positive inflows of $6.62 million on May 20, Monday.
With a total of 3,660 Bitcoins held, net assets of nearly $246 million, and a traded value of $2.78 million, these Bitcoin ETFs have made significant progress in just 13 days of trading. China AMC received $7.09k (0.11 BTC), and Harvest received $321k (4.85 BTC) as the top positions in Bitcoin ETF inflows, followed by Bosera & HashKey with $6.29 million (95 BTC).
Despite this growth, spot crypto ETFs in Hong Kong have seen minimal trading volumes on most days since their launch. The market in Hong Kong is still relatively small compared to the US, where spot Bitcoin ETFs were authorized in January and have significantly larger trading volumes.
While it is widely believed that exchange-traded funds (ETFs) are crucial for attracting institutional capital into the volatile world of virtual assets and driving up prices, the global cryptocurrency market has thus far responded “mutedly” to the ETF introductions in Hong Kong.
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