- The Hong Kong ETF’s debut led to a record $12.4 million in daily trading volume.
- $141 Million Inflows From Hong Kong Bitcoin ETFs Will Taper Negative Flows In The US – Analyst.
On the first day of trading, April 30, the Hong Kong ETFs reached a total trading volume of $12.4 million.
Day one performance was reportedly strong in terms of AUM (assets under management), especially for ChinaAMC, which generated over $141 million in AUM.
Commenting on the performance, Bloomberg analyst Eric Balchunas noted that the $12.4 million was significant when translated into US equivalents. Part of his post on X (formerly Twitter) read,
“A total of $12.4 million was traded, WAY ahead of that market equivalent of $1.6 billion in the US. Assets are much stronger: China AMC reports $141 million in assets (equiv. $22 billion in the US) of which $121 million in BTC and $20 million in ETH, so ETH took 14%.”
How did Bitcoin perform against Ethereum?
Hong Kong saw the debut of six spot Bitcoin [BTC] and ether [ETH] ETFs, the first of their kind in the Asian region.
The six products come from ChinaAMC, Bosera, Hashkey and Harvest. However, day one results show that Bitcoin grabbed more volume and AUM.
In the case of ChinaAMC, Bitcoin dominated with $121 million in assets (86%) compared to ETH’s $21 million.
In terms of trading volume, Bosera Hashkey Bitcoin ETF registered HK$12.44 million, while its ETH ETF raised HK$2.48 million during its first day of trading.
For Harvest, BTC ETF spot volume reached HK$17.89 million, while ETH ETF yielded HK$4.95 million. Ergo, a similar pattern was recorded across three issuers: BTC had more trading volumes than ETH.
However, ChinaAMC dominated the total trading volumes on the first day, accounting for more than 55% of the total BTC turnover.
After adjusting performance to the US spot BTC ETFs, Balchunas underlined that Hong Kong’s debut was a great achievement.
“East versus West: The US made $740 million in assets and $4.6 billion in trade. These are well below that, but if you adjust the size of their mkt it’s a different story: $25 billion+ and $1.6 billion respectively.”
Bitcoin ETF’s first-day performance in Hong Kong pales in comparison to US counterparts on the same benchmark.
However, Balchunas emphasized that the $141 million inflow from Hong Kong Bitcoin ETFs will help offset the current negative US flows.
In the meantime, BTC price retested the low around $60,000. More volatility is expected as this week is action packed.
In particular, the FOMC meeting and the US Treasury Department’s Quarterly Refunding will take center stage in a few hours, offsetting crypto trends for the second half of 2024.
However, market watchers expect the latter to carry more weight as it will determine the amount of liquidity injected into the market.