Hong Kong Bitcoin and Ether ETFs have tough debut on first-day trading

The launch of spot Bitcoin exchange-traded funds (ETFs) in the United States proved difficult to follow, as Hong Kong’s new Bitcoin and Ethereum ETFs reached $12 million in trading volume.

Spot Bitcoin (BTC) and Ether (ETH) ETFs have finally reached the Hong Kong markets, but trading volumes suggest that the launch of Spot Bitcoin ETFs in the United States has set the bar exceptionally high.

The total trading volume of the six new crypto ETFs as of the close of the first day in Hong Kong was 87.58 million Hong Kong dollars ($12 million). This figure pales in comparison to the first day trading volume of spot Bitcoin ETFs in the United States, valued at $4.6 billion.

First day trading of Bitcoin and Ethereum spot ETFs on the Hong Kong Stock Exchange. Source: HKEX

Data shared by the Hong Kong Stock Exchange (HKEX) highlighted the relatively stable performance and interest for the six Bitcoin and Ether (ETH) spot ETFs managed by China Asset Management, Harvest Global, Bosera and HashKey.

The Bosera HashKey Bitcoin ETF recorded a trading volume of HK$249,000 on its first day, while the Bosera HashKey Ether ETF produced a trading volume of HK$99,000 at the closing bell.

Related: Hong Kong Bitcoin and Ether ETFs Officially Approved to Start Trading on April 30

China Asset Management’s Bitcoin ETF (CAM) performed much better, with trading volume of HK$4.6 million. Trading opened at HK$8,080 and closed at HK$7,950. CAM’s Ether ETF recorded a trading volume of HK$4.6 million at the closing bell.

Wu Blockchain previously reported that the CAM subscription size for its Bitcoin and Ethereum spot ETFs attracted $140 million during the initial offering period before trading began.

HKEX previously highlighted investor interest in its cryptocurrency futures ETFs, which were first launched in late 2022. Its three “VA Futures ETFs” attracted $529 million in net inflows in the first quarter 2024 – reinforcing the hype around BTC and ETH spot ETFs. launch on April 30.

The South China Morning Post reported that local fund managers and brokerages are offering fee waivers in a bid to attract investors to new crypto ETFs.

Harvest is waiving its management fees for six months while Borsera has waived its management fees for four months.

The publication also hints that investors in mainland China could potentially gain access to the newly launched products. However, this could be mitigated by KYC policies for mainland China ID cards.

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