The ETF product introduced by ChinaAMC, a Chinese fund manager, has been a significant positive development for the newly authorized Hong Kong Ether. As of Wednesday noon, net flow increased to more than HK$5 million, which equals US $640,780.
This latest money—$3.77 million as of Tuesday’s outflows—is the biggest one since the start of the ETF. It is waiting for the US to approve similar products that came to the market after Bitcoin, the first cryptocurrency, came out, thus driving the ETFs’ growth.
Hong Kongss EtherKongs Fss Break Trading Records
According to a South China Morning Post report, the ETF traded more than 1.28 million shares on Tuesday, significantly above the daily average of about 500,000 since its launch on April 30. The other two spots, Hong Kong Ethereum ETFs, also saw “higher than” average trading volumes this week; Harvest Global, Bosera, and HashKey Capital, the businesses that spoke of them, claim that their Tuesday trading volumes were above 18%.
Despite being a crucial component of the city’s virtual asset strategy, the spot cryptocurrency Hong Kong Ethereum ETFs have had relatively little trading volume on most days since their inception. Even though the products were made in January, the trading volume of spot Bitcoin ETFs in the US is still quite small.
Data from SoSo Value indicates that the Bitcoin Spot ETF experienced a net inflow of $306 million on Tuesday, which consequently became the seventh day of consecutive positive flow. The BBTC ETF had a net outflow of $0.00 during a single day, a $290 million inflow for Blackrock, and a total net asset value of $58.910 billion for Bitcoin Spot ETFs.
Market Optimism
Some believe that ETFs are essential in bringing institutional Money to the digital asset space. Increasing the value of virtual currencies, which are typically volatile. Nonetheless, the overall cryptocurrency market did not react much (un) to the ETF launches in Hong Kong at first glance. Bloomberg analysts have suggested that the Hong Kong ETF market is much smaller than the US exchange-traded fund market.
However, they say that the city’s spot city ETFs—the first of their kind in Asia—are critical to comprehending and distributing assets worldwide. They have recently seen a massive rise in the trading volume of the Hong Kong Ethereum ETF, which coincided with the increase in the value of cryptocurrency. The news suggests that the SEC in the United States is more likely to allow the spotting of Ethereum ETFs.
As per Bloomberg Intelligence Critical Portfolio Caofutters, James Seyffart, and Eric Balchunas of the SEC, the SEC’s stance on Ethereum ETFs is likely changing, as they have only recently increased their projected probability of approval from 25% to 75%. With the rise of prices by almost 20%, ETH has become the second-largest cryptocurrency by market capitalization, as it has topped US$3,700 this week. The primary cryptocurrency was also 4% high, briefly surpassing $71,000.
FAQs
How did trading volumes perform for the Hong Kong Ethereum ETFs?
On Tuesday, the Hong Kong Ethereum ETF traded over 1.28 million shares, far surpassing its average daily volume of about 500,000 since its launch.
What is the current trend for Bitcoin and Ethereum ETFs in the market?
Bitcoin ETFs in the US are experiencing consistent inflows, while Hong Kong's Ethereum ETF has seen rising trading volumes and market optimism for cryptocurrency ETFs.
How is the market reacting to Ethereum ETFs in Hong Kong?
Despite initial quiet trading, Hong Kong's Ethereum ETFs are gaining attention with rising volumes, aligning with increased Ethereum prices and growing global institutional interest.
What are analysts saying about Ethereum ETFs' approval in the US?
Bloomberg analysts have raised the probability of the SEC approving Ethereum ETFs from 25% to 75%, highlighting a significant shift in market sentiment.
