ChinaAMC (Hong Kong) Limited hosted a press briefing on April 29 to talk about its new Spot ChinaAMC Bitcoin ETF and Spot ChinaAMC Ethereum ETF, set to launch at 1:30 a.m. UTC (9:30 a.m. Hong Kong time) on April 30.
Foresight News reported that Zhu Haokang, who leads digital asset management and family wealth at ChinaAMC (Hong Kong), anticipates that the trading volume of their spot crypto ETFs on the debut day would exceed the $125 million benchmark achieved by ten US Bitcoin spot ETF issuers on January 10 of this year. Zhu also mentioned that ChinaAMC is aiming to set a record for the highest trading volume on the first day among the three issuers in Hong Kong.
Today marked the official debut of six spot Bitcoin and Ethereum ETFs on the Hong Kong Stock Exchange, introducing Asia’s first spot crypto ETFs. This move is part of the region’s ongoing efforts to establish itself as a crypto hub.
The six new ETFs listed on Hong Kong Exchanges and Clearing Ltd. (HKEX) are the Bosera HashKey Bitcoin ETF (3008.HK), Bosera HashKey Ether ETF (3009.HK), ChinaAMC Bitcoin ETF (3042.HK), ChinaAMC Ether ETF (3046.HK), Harvest Bitcoin Spot ETF (3439.HK), and Harvest Ether Spot ETF (3179.HK).
Sadly, the reality of today’s launch did not live up to pre-launch expectations:
Sina G., Co-Founder and COO of 21st Capital, said there were $8.8 and $2.6 of inflows to the new Hong Kong-based spot Bitcoin ETFs spot Ethereum ETFs, respectively:
He went on to say:
“These ETFs provide in-kind creation/redemption. You can deposit and withdraw Bitcoin, which is a major advantage. Investors in Mainland China are banned from buying these. As a result, compared to US volume (e.g., $1B for IBIT), these traded 100 times less. So, on the first day, at least, it shows a very small trading market. In the coming months, I do expect some mainland capital to find its way to HK ETFs through various loopholes.“
Eric Balchunas, a Senior ETF Analyst at Bloomberg, says the total trading volume for the six new ETFs was around $12.4 million, and although this figure is a lot smaller than the $4.6 billion in trading volume achieved on day one (i.e. January 11) of the launch of 10 spot Bitcoin ETFs in the U.S., the size of the Hong Kong market should be taken into account:
He went on to say:
“As I said in early tweets on HK, you have to understand it is 1/168th the size of the US. ‘What is this an ETF market for ants!?’ Yes, it is. That said, HK ETFs launched at a good time as the US was slowing, so their $141m+ in inflows will more than offset slightly negative US flows.“
Currently (as of 12:30 p.m. UTC on April 30), Bitcoin is trading at around $61,233, down 1.8% in the past 24-hour period:
As analyst “Crypto Rand” pointed out, Bitcoin seems headed toward its worst monthly close in sixteen months:
Featured Image via Unsplash
