The introduction of Bitcoin and Ethereum ETFs in Hong Kong has attracted considerable interest from financial analysts. Eric Balchunas, a senior ETF specialist at Bloomberg, has provided insights into the initial performance and implications of these launches.
Alex DovbnyaDespite trading volumes reaching $12.4 million on their first day, which is significant for the Hong Kong market, assets under management present a more substantial picture. China AMC leads with reported assets totaling $141 million, primarily allocated to Bitcoin with a portion in Ethereum.
Balchunas highlights that while trading figures may appear modest compared to the U.S. market, adjusting for market size provides a more nuanced perspective.
In comparison, the U.S. boasts larger figures with $740 million in assets and $4.6 billion in trading. However, when considering market scale, the Hong Kong ETFs demonstrate promising potential. China AMC's Bitcoin ETF has quickly established itself among the top products within its market segment, despite its relative size compared to the U.S.
Gamza KhanzadaevBalchunas contextualizes the Hong Kong market as a fraction of its U.S. counterpart, describing it as "an ETF market for ants." Nevertheless, he notes that the timing of the ETF launches in Hong Kong seems advantageous, aligning with a period of slowdown on the U.S. market.
This suggests that the influx of over $141 million in inflows could counterbalance any negative trends in the United States, offering optimism for the cryptocurrency ETF landscape in Hong Kong.
Alex Dovbnya
Vladislav Sopov
Dan Burgin