Hong Kong’s foray into the world of cryptocurrency ETFs saw a measured debut on Tuesday, with the six new Bitcoin and Ether-based ETFs recording a combined trading volume of approximately HK$49.4 million (US$6.3 million) during the morning session.
China Asset Management’s “ChinaAMC Bitcoin ETF” took the lead, generating HK$22.97 million in turnover, followed by their Ether ETF with HK$10.47 million. The remaining four ETFs, managed by Harvest Global, Bosera, and HashKey, saw moderate trading activity.
While the first-day volume pales in comparison to the US’s $4.6 billion debut for their Bitcoin ETFs in January, the launch marks a significant development for the Asian crypto market.
China Asset Management, a major player in the ETF space, revealed a pre-trading subscription size of HK$1.1 billion (US$140.5 million), with their Bitcoin product attracting HK$950 million and the Ether ETF securing HK$160 million. This indicates strong initial investor interest.
The modest trading volume could be attributed to various factors, including the limited pool of eligible investors (currently restricted to Hong Kong residents) and the cautious nature of the market following recent crypto market fluctuations.
Also Read: Hong Kong’s Crypto ETFs to Trigger a Mainland Chinese Investment Wave – Experts Weighs in
However, the launch paves the way for future growth and broader accessibility. Industry experts believe that regulators will closely monitor the performance of these ETFs, potentially opening the door for mainland Chinese investors to participate in the future.
This measured debut marks a significant step for Hong Kong’s crypto landscape, laying the groundwork for a potentially flourishing market for Bitcoin and Ether ETFs in the region. As the market matures and regulations evolve, we can expect to see increased trading activity and wider investor participation in the coming months and years.
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