- Hong Kong Bitcoin ETFs will begin trading this week.
- Australia joins the BTC ETF mania; Will APAC Demand Boost BTC Prices?
The long-awaited and unique “in-kind” Hong Kong Bitcoin [BTC] ETFs are here. Trading will start on Tuesday, April 30, and market watchers see the debut as a game changer for Asia.
One market watcher, Willie Woounderlined the significance of the Hong Kong ETF in the region by citing Asia’s highest crypto user statistics.
“The Asian market is LARGER in terms of number of users than the American and European markets combined.”
Source: X/Willy Woo
Hong Kong Bitcoin ETFs are causing wars and market size
The first batch of approved products from Bosera, ChinaAMC (Hong Kong) and Harvest Fund will go live on the Hong Kong Stock Exchange on April 30.
On average, Bloomberg analyst James Seyffart noted that Hong Kong issuers have set very low rates that could trigger a war on fees.
“There could be a potential fee war in Hong Kong over these #Bitcoin & #Ethereum ETFs. The harvest is coming in well with a complete exemption from fees and the lowest fee of 0.3% after exemption.”
Source: X/James Seyffart
There was initial excitement about the potential impact on BTC prices if Hong Kong starts trading BTC ETFs.
In mid-April, Singapore-based crypto research firm Matrixport predicted that Hong Kong’s spot BTC ETFs could attract $25 billion in inflows.
However, a Bloomberg analyst, Eric Balchunas, downplayed the estimates as it became clear that mainland China would face restrictions.
The analyst updated his previous estimate of $200 million to $1 billion in assets under management, noticing That,
“Our asset estimate now stands at $1 billion in the first two years (which IMO says is healthy, but nowhere near the $25 billion some have said), but much depends on improving the infrastructure.”
Additionally, the report noted that the APAC region only had about $250 million in current BTC ETFs, shared between Hong Kong and Australian funds.
“The Asia Pacific BTC ETFs currently manage $251 million in assets across three funds in Kong Kong and two in Australia.”
Australia is following the madness of the US and Hong Bitcoin ETF
However, Australia is reportedly in the advanced stages of attracting more spot BTC ETFs on its larger Australian Stock Exchange (ASX).
A recent Bloomberg reportdated April 29, highlighted that potential issuers such as Van Eck, BetaShares and DigitalX have submitted applications for spot Bitcoin ETFs in Australia.
ASX has not provided an official timeline. However, an eventful approval could boost institutional adoption and strengthen Hong Kong’s Bitcoin ETFs and the overall APAC region.
In the meantime, the price of BTC hovered slightly above the low of $60.8K.
Given the US Fed’s interest rate decision scheduled for Wednesday, and a lot liquidity on the card Positioned on the upside, wild volatility is likely this week.