- Following a successful first-day trade of Bitcoin Spot ETFs in Hong Kong, Bloomberg Intelligence expert Eric Balchunas has analyzed the introduction of the products in the country.
- Despite being just 1/168th the size of the funds in the United States, Hong Kong’s Bitcoin Spot ETFs have attracted notable inflows.
- These inflows have more than offset the marginally negative US flows, according to Balchunas.
Bitcoin Spot ETFs in Hong Kong have seen a successful first day of trade, attracting significant inflows and offsetting negative US flows, according to Bloomberg Intelligence expert Eric Balchunas.
Hong Kong’s Bitcoin Spot ETFs Attract Notable Inflows
On Tuesday, Eric Balchunas called Hong Kong Spot Bitcoin ETFs a market for ants, as it is just 1/168th the size of the funds in the United States. He further highlighted that the debut of HK spot ETFs coincided well with the US slowdown, so their inflows will more than offset the marginally negative US flows.
Bitcoin ETFs: Bloomberg Analyst Outlines US Market Supremacy Over Hong Kong
Given the notable inflows seen on the first day, the Human and Machine channel called out the analyst noting that after raising more than HK$11.2 million on their first day of operation, Hong Kong’s Bitcoin and Ethereum Spot ETFs countered net outflows from the US market. Balchunas responded stating that the exact $292 million in assets that were contributed as seed money just prior to launch are not included in the volume calculation. Meanwhile, in the US, seed money is withheld until the first day to make the volume appear larger, which aids in marketing.
The Funds Sees Massive Outflows In US
The Bloomberg expert’s review came in light of the massive outflows witnessed in the US market surpassing $500 million in a day. Wednesday saw the fastest-ever selloff of US BTC spot ETFs by investors, recording a cumulative net outflow of $563.7 million. According to data from Farside Investors, this marks the biggest outflow since the funds started trading early this year. Of the 10 Spot Bitcoin ETFs, Fidelity Wise Origin Bitcoin Fund (FBTC) saw the largest withdrawals, totaling $191.1 million.
Conclusion
In conclusion, despite the smaller size of Hong Kong’s Bitcoin Spot ETFs compared to those in the US, they have managed to attract significant inflows on their first day of trade. This has more than offset the negative flows seen in the US, where there have been massive outflows surpassing $500 million in a day. The situation highlights the potential of the Hong Kong market and the continued interest in Bitcoin and other cryptocurrencies.
