The Securities and Futures Commission (SFC) of Hong Kong approved the Ethereum spot ETF in April. However, since its issuance, the trading volume has been consistently low, even lagging behind the trading volume in the United States by a thousand times. This article is sourced from “inpower Wang Jun” and is compiled, translated, and written by Foresight News.
(Note: Hong Kong Ethereum spot ETF “late” compared to Bitcoin listing, can Chinese investors buy it?)
(Supplementary background: Wintermute market maker enters Hong Kong! Announces liquidity provision for local Bitcoin and Ethereum spot ETFs)
Note: This article was written on the day before the official approval of the Ethereum spot ETF in the United States, which was on May 23.
Recently, there has been a lot of buzz about the approval of the Ethereum spot ETF in the United States, and Ethereum also surged by 20% in response. In fact, as early as last month, Hong Kong had already approved the Ethereum spot ETF, but at that time, there was no significant fluctuation in the price of Ethereum.
Against the backdrop of Ethereum’s surge, the net inflow of the three Hong Kong institutions’ Ethereum spot ETFs was only 62.8.
This performance is even worse than that of a retail fan on my Binance platform.
The situation of Hong Kong’s cryptocurrency ETF after listing
The Hong Kong Ethereum ETF not only performed poorly yesterday but has been underperforming since its issuance:
Except for some inflows on the first day of issuance, the trading volume has been relatively low for a long time. And it’s not just the Ethereum ETF, the Bitcoin ETF is also the same:
Except for over 3,000 net inflows of Bitcoin on the first day, the following days also had almost equal buying and selling volumes. In the following image, let’s compare the data of the US Bitcoin spot ETF: “The difference in trading volume between Hong Kong and the US Bitcoin spot ETF can be a thousand times! It’s worth noting that the trading volume of Hong Kong stocks and US stocks is only 40 times apart…”
What about the future?
However, currently, all mainland Chinese users, regardless of whether they have a Hong Kong stock account or have opened the South-North connection, cannot purchase Hong Kong financial products related to cryptocurrencies. It seems that apart from investors from mainland China, compliance institutions in Hong Kong may have a hard time attracting others.
The public fund companies supporting BTC/ETH spot ETFs in Hong Kong include: Bosera Bitcoin ETF (03008.HK), Bosera Ethereum ETF (03009.HK), CSOP Bitcoin (03439.HK), Huatai Bitcoin (03042.HK), CSOP Ethereum (03179.HK), Huatai Ethereum (03046.HK).
These companies are well-known and reputable funds, so their capabilities cannot be questioned. Not only do the trading volumes of these spot ETFs perform poorly, but the exchanges that have obtained regulatory licenses in Hong Kong have also had little impact on the liquidity of cryptocurrencies in this market rally.
Hong Kong’s crypto-friendly policies now seem a bit like playing pretend.
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