- Hong Kong’s ETFs witnessed low trading volumes in the initial four trading days.
- The Bitcoin ETFs marked $5.5 million in trading volume on Friday, much lower than the first day.
- Bitcoin’s bearish track significantly impacts Hong Kong’s failure to attract investors to the ETF market.
Recent reports revealed that Hong Kong’s recently launched Bitcoin ETFs marked comparatively lower trading volumes in the first four days. Amidst declining Bitcoin price, the Bitcoin exchange-traded funds failed to attract investors and traders.
Reinforcing its vision of establishing a crypto hub, Hong Kong launched Bitcoin and Ether ETFs on April 30, following the Securities and Futures Commission’s (SFC) green light. In total, asset managers China Asset Management, Harvest Global, Bosera, and HashKey launched 6 Bitcoin and Ether ETFs.
In a previous interview, ChinaAMC executive Zhu Haokang posited that the initial listing scale of Hog Kong’s ETFs would exceed the initial day’s scale of US ETFs. He remained confident of the ETFs as he asserted, “The details will be revealed to everyone at 9:30 tomorrow morning.”
Contrary to Haokang’s words, on the initial day, the ETFs recorded a total trading volume of 87.58 million Hong Kong Dollars, equivalent to $12 million. The figure marked a severe low from the first-day trading volume of US spot Bitcoin ETFs, valued at $4.6 billion. However, Bloomberg’s ETF analyst Eric Balchunas asserted that considering the size of Hong Kong’s crypto market compared to that of the US, the volume doesn’t mark Hong Kong’s failure.
The trading volume declined substantially in the following days, with Bitcoin ETFs witnessing a $5.5 million trading volume on Friday. Reports state that the prevailing bear market and the falling BTC price, which lost nearly a tenth of its value in the past month, remain a significant barrier to the success of Hong Kong’s ETFs.
At present, Bitcoin is trading at $63,331, with a slight surge of 0.15% in the last day. The pioneer cryptocurrency even witnessed the $56k mark at the onset of May. Over the past week, Bitcoin has shown a decline of 0.96% and a dip of 5.33% over the past month.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
