Low Trading Volumes in Hong Kong’s ETFs: A Missed Opportunity for Crypto Investors? (BTC, ETH)

  • Hong Kong’s recently launched Bitcoin ETFs have recorded lower trading volumes in their first four days of trading.
  • The Bitcoin ETFs marked a trading volume of $5.5 million on Friday, a significant drop from the first day.
  • The bearish trend of Bitcoin is cited as a major factor in the ETFs’ failure to attract investors.

Hong Kong’s newly launched Bitcoin ETFs struggle to attract investors amidst declining Bitcoin prices, recording lower trading volumes in their initial trading days.

Low Trading Volumes for Hong Kong’s Bitcoin ETFs

Hong Kong’s Bitcoin and Ether ETFs, launched on April 30, have experienced lower trading volumes in their initial four days. Despite the Securities and Futures Commission’s (SFC) approval and the launch of six Bitcoin and Ether ETFs by asset managers China Asset Management, Harvest Global, Bosera, and HashKey, the ETFs have failed to attract significant investor interest.

Bitcoin’s Bearish Trend Impacts ETF Market

The bearish trend of Bitcoin, which has lost nearly a tenth of its value in the past month, is a significant factor in the ETFs’ lackluster performance. The trading volume of the Bitcoin ETFs dropped to $5.5 million on Friday, a stark contrast to the first day’s trading volume of 87.58 million Hong Kong Dollars, equivalent to $12 million.

Contrasting Predictions and Reality

ChinaAMC executive Zhu Haokang had previously expressed confidence in the ETFs, predicting that their initial listing scale would exceed that of US ETFs. However, the reality has been quite different, with the ETFs’ trading volume falling short of the first-day trading volume of US spot Bitcoin ETFs, which stood at $4.6 billion.

Conclusion

Despite the initial optimism surrounding the launch of Hong Kong’s Bitcoin and Ether ETFs, their performance has been underwhelming due to the bearish trend of Bitcoin. As Bitcoin continues to trade at a lower value, the future success of these ETFs remains uncertain.

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