Hong Kong Sees Record Inflows for Ethereum ETFs
Ethereum ETFs in Hong Kong hit record inflows, while Bitcoin ETFs continue to perform strongly, as investors speculate on potential US SEC approvals.
On May 21, 2024, Ethereum ETFs in Hong Kong saw their highest daily inflow since launching on April 30. ChinaAMC's fund alone attracted over HK$3.77 million, with other ETFs also receiving significant investments. The Hong Kong government recently approved Bitcoin and Ethereum spot ETFs to let traders invest in crypto without direct exposure to its volatility. Since their introduction, Bitcoin spot ETFs have been more popular than Ethereum ETFs.
This week marked a change for Ethereum ETFs. On Monday, none of the three Ethereum ETFs managed by ChinaAMC, Harvest Global, Bosera, and HashKey Capital saw any inflows, meaning no new investor purchases. However, on Tuesday, investors began buying these funds. ChinaAMC’s Ethereum ETF traded over 1.28 million shares, much higher than its usual 500,000. The other two Ethereum ETFs saw an 18% rise in net inflows. This trend continued into Wednesday, with the three funds generating around HK$5 million early in the day.
The increased interest in Ethereum ETFs may be due to speculation that the US Securities and Exchange Commission (SEC) might approve Ethereum ETFs. The SEC approved Bitcoin ETFs in January 2024, making the US the first country to do so. Despite optimism, Hong Kong is the only place currently allowing both Bitcoin and Ethereum ETFs.
Bitcoin ETFs in Hong Kong have performed well. On their first day, April 30, both Bitcoin and Ethereum ETFs had over HK$87.5 million ($11.2 million) in trading volume. However, this is modest compared to the $4.6 billion from Bitcoin ETFs in the US on their opening day.
This week, Bitcoin ETFs in Hong Kong continued to see strong inflows, with around $6.62 million on Monday. Issuers now hold 3,660 BTC after 13 days of trading, with total net assets around $246 million and $2.78 million in traded value. Bosera and HashKey led Monday's inflows with $6.29 million (95 BTC), followed by ChinaAMC with $7.09k (0.11 BTC) and Harvest with $321k (4.85 BTC).
In summary, Bitcoin ETFs lead in daily inflows, but Ethereum ETFs in Hong Kong are gaining momentum due to speculation of SEC approvals in the US. Hong Kong remains a pioneer in offering both Bitcoin and Ethereum ETFs, marking a significant step in integrating cryptocurrency into mainstream finance.
