According to a report by The Block, Hong Kong’s six Bitcoin and Ethereum spot ETFs recorded a trading volume of over HKD 87.5 million (approximately USD 11.2 million) on their first trading day on Tuesday, significantly lower than the USD 4.6 billion trading volume achieved by 11 Bitcoin spot ETFs in the United States on their first day in January.
According to the Hong Kong Securities and Futures Commission’s product list, the six virtual asset spot ETFs listed today are:
– Huaxia Fund (Hong Kong)’s “Huaxia Bitcoin ETF” (03042.HK) and “Huaxia Ethereum ETF” (03046.HK)
– CSOP Asset Management’s “CSOP Bitcoin Spot ETF” (03439.HK) and “CSOP Ethereum Spot ETF” (03179.HK)
– Bosera Fund (International) and HashKey’s jointly managed “Bosera HashKey Bitcoin ETF” (03008.HK) and “Bosera HashKey Ethereum ETF” (03009.HK)
Data from the Hong Kong Stock Exchange shows that the trading volume of the Huaxia Bitcoin ETF ranked first, reaching HKD 37.16 million. The ETF closed with a 1.53% increase, while the trading volume of the Huaxia Ethereum ETF was HKD 12.66 million. The trading volumes of CSOP’s Bitcoin and Ethereum spot ETFs were HKD 17.89 million and HKD 4.95 million, respectively. The first-day trading volumes of Bosera HashKey’s Bitcoin and Ethereum ETFs were HKD 12.44 million and HKD 2.48 million, respectively.
Huaxia Fund stated in an interview with The Block that the assets under management of its Bitcoin spot ETF reached USD 121.7 million by the end of the first trading day, while the assets under management of its Ethereum spot ETF were USD 20.4 million.
Market Viewpoint
Justin d’Anethan, Head of Asia Pacific Business Development at cryptocurrency market maker Keyrock, commented in an interview, “Although people tend to have high expectations for Bitcoin spot ETFs, often unmet, I actually think the spot ETFs in Hong Kong are successful.” d’Anethan added that although the trading volume cannot be compared to the Bitcoin spot ETFs launched in the United States, “this happened in a completely different market dynamic,” and “Hong Kong doesn’t open such products to investors in mainland China (which is worth noting), yet it has received some decent buy-ins, which is positive.”
In addition, Hong Kong’s Ethereum spot ETF currently does not offer staking rewards. d’Anethan stated, “Missing out on approximately 4% annualized returns is not a small matter.” Livio Weng, CEO of HashKey Exchange, stated in an interview today that fund issuers need to have more discussions with regulatory authorities to design and introduce staking reward mechanisms, as such activities may be considered risky.
Eric Balchunas, an ETF analyst at Bloomberg, stated on the X platform that the data performance of Hong Kong’s cryptocurrency spot ETFs is already a significant number for the Hong Kong ETF market. Applying the trading volume in the same proportion to the US ETF market would be equivalent to USD 1.6 billion. Balchunas wrote, “In addition, the capital inflow of over USD 141 million from Hong Kong ETFs will be sufficient to offset the outflow from US ETFs, as the US cryptocurrency ETFs slow down.”
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