News & Analyses

Bitcoin, Ethereum ETFs disappoint in Hong Kong debut

  • Bitcoin and Ethereum Spot ETFs issued in Hong Kong registered a combined trading volume of around $12 million at market close on Tuesday. 
  • When compared to the US stock market, the response from the Asian market is underwhelming. 
  • US Bitcoin Spot ETFs recorded $4.6 billion in trade volume in their first trading day, 383 times the volume observed in Hong Kong. 

The recently approved Bitcoin (BTC) and Ethereum (ETH) Spot Exchange Traded Funds (ETFs) in Hong Kong failed to gather a significant volume on their first trading day on Tuesday. The launch of the crypto-related ETFs was far away from the overwhelming response that the Bitcoin Spot ETFs received in the US in January, when the trading volume hit $4.6 billion on the first day after their approval. 

Bitcoin and Ethereum Spot ETFs receive cold response in Hong Kong

Six Spot Bitcoin and Ethereum ETFs debuted in Hong Kong on Tuesday. China Asset Management (ChinaAMC) Spot Bitcoin ETF secured $121.7 million in assets under management (AUM), while Spot Ether ETF had $20.4 million in AUM, as reported by The Block. 

However, the debut is underwhelming when compared to the US launch of Spot Bitcoin ETFs based on the trade volume they gathered. The launch of Bitcoin ETFs for US-based investors recorded nearly $4.6 billion in trade volume back in January, 383 times of volume observed in the around $12 million posted by Hong Kong ETFs. 

Bitcoin Spot ETFs debuted in Asia three months after the US launch to see a relatively cold response from market participants in Hong Kong. 

While crypto is banned in mainland China, Hong Kong has emerged as Asia’s virtual asset hub, a haven for traders interested in exchange-traded products. Hong Kong’s market allows the trade of an Ethereum spot ETF, a product that isn’t available in the US as the US Securities and Exchange Commission (SEC) is reviewing applications for its launch. Most analysts suggest that an imminent approval isn’t likely as the SEC takes a more cautious approach after it approved the Bitcoin ETF. 

Eric Balchunas, Senior ETF analyst for Bloomberg, shared detailed flows for the Hong Kong debut of the ETFs in atweet on X. 


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