Hong Kong Bitcoin and Ether ETF Raises Over $200M on Day 1
Hong Kong's spot bitcoin and ether exchange-traded funds (ETFs) attracted more than $200 million in total assets in their first session on April 30.
According to data provided by Arkham Intelligence, the Bocera Hashkey Space Bitcoin and Ether ETF has accumulated 964 Bitcoin (BTC) and 4,290 Ether (ETH), respectively, with assets under management totaling $71.94 million. Meanwhile, Eric Balchunas, senior ETF analyst at Bloomberg, said spot bitcoin and ether ETFs created by ChinaAMC generated combined assets of $123.61 million.
At the time of publication, the Hong Kong Stock Exchange had not updated the asset management information of the third ETF issuer, Harvest Global Space for Bitcoin and Ether ETFs. However, the combined income of these two ETFs reached $23 million.
Asset prices are lower than their U.S. counterparts, where Bitcoin ETFs attracted nearly $4.5 billion in assets under management in the first week of trading on January 12 alone. Wall Street.
We tried to warn everyone to lower their expectations.[garding] HK,” commented Balchunas. “That said, if you crunch the numbers, this was huge: for example, the ChinaAMC bitcoin ETF took in $123 million in one day, ranking it 6th out of 82 ETFs launched in HK in the last 3yrs and in the top 20% overall,” he added.
Meanwhile, HashKey wrote: “Importantly, Hong Kong citizens can subscribe to or buy units in ETFs if they meet local regulatory requirements, such as passing customer due diligence. Additionally, Hong Kong crypto ETFs allow investors to subscribe to ETF units directly using BTC and ETH and vice versa, which is not available to their US counterparts.
An April 28 survey by Hong Kong-regulated crypto exchange OSL found that 76.9% of crypto-savvy respondents in the city plan to invest in Bitcoin and Ether ETFs. “This positive investor sentiment strongly indicates the acceptance and importance of digital assets in the region's economy, and Hong Kong is once again reasserting its position as a digital asset hub,” said OSL Executive Director and Head of Regulatory Affairs Gary Tiu.
Despite the hype, Hong Kong's crypto ETFs are only accessible to the city's estimated 6.4 million residents. Mainland Chinese investors, numbering north of 1 billion, are currently barred from investing in fictitious ETFs unless they hold a Hong Kong residency permit.
Related: Hong Kong authorities recommend self-regulation of city's crypto industry
