Spot exchange-traded funds (ETFs) for bitcoin and Ethereum made their debut in Hong Kong. The turnover in the funds was lower than expected.
The total trading volume in all ETFs from three issuers barely exceeded $11 million. For comparison, in January, when similar funds were launched in the U.S., by the results of the first trading day, the trading volume in them was above $1 billion. Earlier, Bloomberg ETF market analyst Eric Balchunas called the launch of cryptocurrency ETFs in Hong Kong "child's play" compared to trading in funds from BlackRock, Fidelity, VanEck and other financial heavyweights in the United States.
Nevertheless, Hong Kong was ahead of the U.S. in launching spot funds for Ethereum; in the U.S., regulators have long delayed the launch of such ETFs.
So-called spot ETFs involve the actual purchase of cryptocurrency to back the fund's units. The launch of such ETFs in the U.S. triggered an influx of capital into the market and was one of the catalysts for bitcoin price growth in 2024.
Some thought that the launch of new ETFs in Hong Kong had already contributed to the growth of bitcoin, but it turns out that not only did it not contribute to the growth, but it brought the bitcoin price down to a record daily drawdown. We should not forget that as long as there is such a player as GreyScale on the market, bitcoin sales cannot be calculated. Today GreyScale sent more than 3,000 BTC to the exchange.
The video shows the moment of the launch of trading in Hong Kong cryptocurrency ETFs live on CNBC channel
Posted Using InLeo Alpha