HK Bitcoin & Ethereum ETF $12M Volume Is Impressive: Bloomberg Analyst

Bloomberg analyst Eric Balchunas recently highlighted the impressive trading volume of Hong Kong’s Bitcoin and Ethereum ETFs, underscoring the surging interest in the region’s market. Moreover, he dismissed negative comments around the supposed “poor performance” of these funds.

Bloomberg Commends HK Bitcoin & Ethereum ETF Performance

Critics have been highlighting the Hong Kong crypto ETF’s failure to meet the projected trading volume of $100 million on day 1. In an X post, Balchunas countered such claims and lauded the performance of these ETFs. He revealed that the total trading volume for Hong Kong crypto ETFs reached a notable $12.4 million.

Moreover, he emphasized the significance of this figure within the Hong Kong market. He stated that this figure is “a LOT for that market- equiv of $1.6b in US.” Despite the robust trading volume, Balchunas noted that the assets under management (AUM) for these ETFs are even more substantial.

China AMC, one of the issuers, reported a staggering $141 million in AUM. Balchunas underscored that this AUM it is equivalent to “$22 billion in the US.” The fund allocated the majority of assets to Bitcoin, which accounts for a $121 million share. Whilst, Ethereum’s share accounts for 14% of the AUM.

Comparing the East and West markets, Balchunas pointed out that while the US saw $740 million in AUM and $4.6 billion in trading on day 1, Hong Kong’s figures, when adjusted for market size, paint a different picture. Adjusted for market scale, Hong Kong’s trading volume and AUM are equivalent to over $25 billion and $1.6 billion, respectively.

Balchunas humorously referred to Hong Kong’s ETF market size, quoting, “What is this an ETF market for ants!?” Despite its size relative to the US market, Balchunas expressed optimism about the correct timing of the ETF launch in Hong Kong. Furthermore, he suggested that the influx of over $141 million in Hong Kong inflows would also offset some of the negative flows in the US market.

US ETFs Continue Outflow Streak

Spot Bitcoin ETFs in the U.S. have seen a consistent trend of outflows for the fourth consecutive trading session. On Monday, April 29, a total of $51.6 million was withdrawn from the market. Notably, Grayscale’s Bitcoin Trust (GBTC) experienced a substantial outflow, with $24.7 million pulled from the fund.

According to data from Farside UK, ARK Invest’s ARKB ETF also saw a notable decline. The ARKB Bitcoin ETF witnessed $31.3 million leaving their portfolio. However, Blackrock maintained stability, reporting ‘zero” ETF flows.

Whilst, the Bitwise Bitcoin ETF grabbed the spotlight with a $6.8 million inflow, signaling a significant rebound. Conversely, Fidelity Wise’s FBTC witnessed a surge in outflow, with $6.9 million drained out. Additionally, Valkyrie’s BRRR Bitcoin ETF attracted $2.7 million in inflows, and Franklin Templeton’s EZBC ETF reported a $1.8 million influx.

Looking at the broader picture, last week marked a period of weakness for Bitcoin ETFs. Across various funds, there was a total outflow of $328 million. Notably, Grayscale’s GBTC led the pack with significant withdrawals, while the BlackRock Bitcoin ETF maintained a consistent zero flow streak.

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