Hong Kong's Bitcoin and Ethereum ETFs Debut with Modest $11 Million Volume

By: Eva Baxter

Hong Kong's newly launched Bitcoin and Ethereum exchange-traded funds (ETFs) started off with a tepid $11.19 million trading volume, a figure considerably short of initial expectations that predicted volumes surpassing $100 million. This performance is also quite modest when compared to the US debut of similar ETF products, which witnessed a whopping $4.6 billion in trading volume.

The inaugural trading comprised of six freshly minted spot Bitcoin and Ethereum ETFs with China Asset Management's Bitcoin ETF leading in trading volume. Despite lower-than-expected volumes, experts like Gabor Gurbacs, the founder of PointsVille, anticipate a significant market impact with the Bitcoin ETF rivalry heating up between the East and West.

While the Hong Kong ETF market had a softer debut than its US counterparts, stakeholders remain positive about its potential influence. The ETF products, issued by companies adhering to local compliance standards, targeted international investors aiming to broaden the investor base, increase liquidity, and enhance market stability. These ETF products were accessible in several currencies, including Hong Kong dollars (HKD), US dollars, and China's Renminbi (RMB).