• Thu. May 30th, 2024

Hong Kong’s Bitcoin and Ethereum ETFs Grow, Attract $200 Million

Maria Bartiromo

ByMaria Bartiromo

May 1, 2024

The financial markets were rocked by the introduction of Hong Kong’s first spot Bitcoin and Ethereum exchange-traded funds (ETFs), which attracted over $200 million in assets on their first day of trading. The astounding reaction emphasizes Asia’s growing interest in regulated bitcoin investment products and the region’s importance in cryptocurrency.

The JAN3 founder, Samson Mow, said he believes that the current ETFs will be successful in the future amid some challenges they encountered on their first day. He insisted that the Bitcoin ETF in Hong Kong would be big. Mow says, “Maybe not the first in the world, but it’s going to be massive.”

In their statement, Huaxia compares the current Hong Kong Bitcoin ETF with the one applicable to the United States. He said 10 United States spot Bitcoin ETF issuers recorded $125 million in one year. It said he’s confident that Huaxia will become one of the biggest ETF issuers in Hong Kong in the future.

Hong Kong Works Towards Creating a Strong Regulatory Framework 

Hong Kong has made efforts to establish a regulatory framework that strikes a balance between investor protection and innovation, which has helped create a favorable climate for expanding financial instruments linked to cryptocurrencies.

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The introduction of these ETFs coincides with a wave of conventional financial institutions looking at incorporating cryptocurrency into their portfolios. Data published by Arkham Intelligence stated that Bosera HashKey spot Bitcoin and Ethereum ETFs had generated 964 units of Bitcoin and  4,290 units of Ethereum.

This summed up their Assets Under Management at $71.94 million. The Hong Kong Stock Exchange has yet to update Harvest Global’s spot Bitcoin and Ethereum asset management data as of press time. Harvest Global is also the third ETF issuer in Hong Kong. The cumulative turnover of the two ETFs had hit  $23 million.

Hong Kong’s Legislatures Improvise Taking Legislative Protection for Cryptocurrency ETFs

This momentum may potentially spur additional legislative changes as authorities work to establish a secure and encouraging climate for Bitcoin investments. Over $200 million in assets were attracted to Hong Kong’s spot Bitcoin and Ether ETFs on day one, demonstrating the strong demand for regulated cryptocurrency investment products.

Zhiyuan Sun wrote on Cointelegraph that this achievement paves the way for the broader integration of digital assets into conventional financial markets and is a significant step toward the general use of cryptocurrencies.

Reports have shown that the solicited assets have the same value as their United States counterparts. Available records revealed that the spot Bitcoin ETFs attracted almost $4 billion in Assets Under Management (AUM) in its first week, with a trading volume of $4.5 billion as of January 12, its first 24-hour trading on Wall Street.

ChinaAMC BTC ETF Emerges Top Performing Company, Ranked #6

In an interview with Cointelegraph, Balchunas said they tried warning people to reduce their expectations on Hong Kong’s latest cryptocurrency ETF. Balchunas also stated that the number of participants was quite huge, considering the number of local participants.

However, Bloomberg senior ETF analyst Eric Balchunas has disclosed that ChinaAMC BTC ETF garnered  $123.61 million on its first day, ranking #6 out of 82 other ETFs introduced in the last three years in Hong Kong. 

HashKey, however, has written that foreigners are allowed to buy into the country’s ETF market but must meet the country’s regulatory requirements. Such requirements include passing through the identification process and directly subscribing to the ETF units using the Ethereum token or Bitcoin. This arrangement is unavailable in the United States cryptocurrency ETF market.

A survey conducted on April 28 by  OSL, a Hong Kong-based cryptocurrency exchange, said that 76.9% of Hong Kong respondents plan to invest in the spot Ethereum and Bitcoin ETFs. Gary Tiu, the executive director of OSL, responding to the survey, said that the public’s positive response is a powerful pointer to the rising acceptance of digital assets in the country’s major cities.

Maria Bartiromo

Maria Bartiromo

Maria Bartiromo is a renowned news writer and journalist, celebrated for her insightful reporting and authoritative voice. With a career spanning years, she has established herself as a trusted source of accurate and comprehensive news analysis, keeping readers informed on vital global developments.

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