Bitrabo Editorial
One of the Ethereum ETFs launched by ChinaAMC in Hong Kong has witnessed a notable increase in net inflows, exceeding HK$5 million (US$640,780) by mid-day Wednesday. This spike follows a previous high of HK$3.77 million on Tuesday, marking a significant uptrend due to investors anticipating the approval of similar products in the United States for the second-largest cryptocurrency in the market.
Record Trading Activity for Hong Kong’s Ethereum ETFs
The Ethereum ETF in Hong Kong experienced over 1.28 million shares being traded on Tuesday, surpassing the average daily trading volume since its debut on April 30. Additionally, the two other spot Ethereum ETFs in Hong Kong issued by Harvest Global, Bosera, and HashKey Capital observed higher-than-usual trading volumes this week, with all three ETFs recording a price jump of over 18 percent on Tuesday.
While the spot crypto ETFs in Hong Kong were deemed a significant advancement in the city’s journey toward becoming a virtual asset hub, their trading turnover has generally been modest post-launch, especially when compared to spot Bitcoin ETFs in the US approved earlier this year.
On Tuesday, the total net inflow of Bitcoin Spot ETF in the US reached $306 million. Grayscale’s ETF had a net outflow of $0.00, while BlackRock’s ETF observed a single-day inflow of $290 million, with the total net asset value of Bitcoin spot ETF standing at $58.910 billion.
Optimism in the Market
ETFs serve as a crucial tool to attract mainstream investors to volatile virtual assets and potentially boost prices. Despite a relatively modest initial impact on the global cryptocurrency market, Hong Kong’s ETF launches are seen as pivotal for the global adoption and acceptance of virtual assets, especially as the US may approve spot Ethereum ETFs.
Analysts at Bloomberg highlighted that while Hong Kong’s ETF market is smaller than the US market, the city’s spot crypto ETFs, the first in Asia, play a crucial role in the industry. The recent surge in trading volume of Ethereum ETFs in Hong Kong correlates with a price rally in the cryptocurrency market, driven by reports suggesting increased odds of the SEC approving spot Ethereum ETFs.
ETH, the second-largest cryptocurrency, surged over 20 percent this week, surpassing US$3,700, while the largest cryptocurrency climbed by about 4 percent, exceeding US$71,000.
Featured image from Shutterstock, chart from TradingView.com