Hong Kong Crypto ETFs Struggle to Match US Success

Hong Kong's crypto ETFs have disappointed compared to US-based ETFs, which hold $55 billion. The debut of these ETFs in Hong Kong did not meet expectations, leading to investor outflows. Data from Bloomberg shows that six Bitcoin and Ether ETFs saw a decrease in inflow by $25 million from their initial $293 million.

Hong Kong-based ETFs have not performed as well as US-based ETFs, which launched on January 10 and now have $55 billion in total value after hitting $12.1 billion in net inflows.

Hong Kong's smaller trading sector faces challenges, hoping these crypto ETFs will boost trading activity and attract market makers. Hong Kong competes with Singapore and Dubai to become a crypto hub and revive its image as a dynamic financial center, especially after political crackdowns. Surprisingly, Beijing does not oppose Hong Kong's crypto direction despite banning crypto trading in China.

Le Shi from Auros attributes Hong Kong's lukewarm ETF response to two factors: the US launching first and uncertainty about China's crypto stance, making investors cautious.

Harvest Global Investments and a consortium launched Bitcoin and Ether ETFs in Hong Kong on April 30. These funds are not yet accessible to mainland Chinese investors, and it is unclear if this will change. Bloomberg's Rebecca Sin sees promise in Hong Kong's crypto ETFs despite initial setbacks. Total assets surpassing $250 million is a positive sign. She expects more issuers and predicts these ETFs could reach $1 billion within two years.

Hong Kong competes with Singapore and Dubai to become a leading crypto hub, aiming to restore its financial center status. Despite Beijing's crypto ban, it seems unconcerned about Hong Kong's crypto-friendly policies. Le Shi highlights two main reasons for Hong Kong's tepid ETF response: the US's earlier launch and China's uncertain crypto regulations, which caused investors to hesitate.

Harvest Global Investments and partners launched Bitcoin and Ether ETFs in Hong Kong on April 30, currently unavailable to mainland Chinese investors, with future access unclear. Despite challenges, Rebecca Sin sees potential in Hong Kong's crypto ETF market, with total assets over $250 million. She forecasts the market could grow to $1 billion in two years as more issuers join.