Hong Kong Bitcoin and Ethereum ETFs Record Only $12 Million Volume on Day 1

It’s been a dull start to the launch of the Hong Kong spot Bitcoin and Ethereum ETFs with the six combined products recording only $12 million in trading volume. In comparison, the U.S. spot Bitcoin ETFs witnessed a staggering $4.6 billion in trading volumes on the very first day.

Hong Kong Bitcoin ETFs To A Slow Start

According to data from the HKEX, the “ChinaAMC Bitcoin ETF” by China Asset Management led in trading volume, generating HK$87.58 million in turnover during the initial half of the trading day. Following closely, the ChinaAMC Ether ETF recorded the second-highest turnover among the six ETFs, with a volume of HK$12.66 million.

Six spot bitcoin and ether ETFs, managed by China Asset Management, Harvest Global, Bosera, and HashKey, officially launched in Hong Kong today.

During the morning session, Harvest observed HK$8.11 million in trading volume for its spot bitcoin ETF and HK$2.18 million for its ether ETF. Meanwhile, Bosera HashKey Bitcoin ETF recorded HK$3.59 million in volume, with its ether ETF seeing HK$1.53 million in trading volume.

ChinaAMC announced that its initial offering period (IOP) scale for today stands at HK$950 million for the ChinaAMC Hong Kong Bitcoin ETF and HK$160 million for the ChinaAMC Ethereum ETF, totaling approximately US$142 million. Notably, the Bitcoin ETF is approximately 6 times larger than the Ethereum ETF in terms of scale.

Will Chinese Money Find A Way to Invest?

Chinese investors have been struggling for a while with the poor performance of their stock market as well as the 2020 collapse of the real estate market which has failed to recover since then. Despite the dull beginning, investors continue to be bullish that Bitcoin ETFs in Hong Kong will slowly gain traction.

In a recent statement, Bitcoin advocate Samson Mow emphasized the significant potential of Bitcoin Exchange-Traded Funds (ETFs) in Hong Kong. While acknowledging that immediate impact may not be apparent within the first few days, Mow underscored the substantial long-term implications of this development. He noted the limited investment options available to Chinese investors currently, suggesting that Bitcoin ETFs could fill this void and emerge as a prominent choice for them in the future.

#Bitcoin ETFs in HK are going to be big. Maybe not on day 1 or 2, but the long term implications are massive. There is really nothing else for Chinese investors to put their money into at this time. https://t.co/hOSCa7siid

— Samson Mow (@Excellion) April 29, 2024

Moreover, Hong Kong Bitcoin ETFs have some unique advantages over the US Bitcoin ETFs, especially when it comes to redemption options.

One of the primary issuers of Hong Kong’s recently introduced spot-Bitcoin and Ether exchange-traded funds has indicated that these products represent a move towards more diversified investment portfolios for Chinese investors.

According to Yimei Li, the Chief Executive Officer of China Asset Management Co., the launch of these funds on Tuesday “paves the way for many RMB holders” who are exploring alternative investment opportunities.

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