Hong Kong Bitcoin and Ether ETFs tough debut on first-day trading

[TomPluz]

Bitcoin and Ethereum spot ETFs began trading in Hong Kong, but day-one trading volumes were a fraction of those recorded in the United States in January 2024.

Bitcoin and Ethereum exchange-traded funds (ETFs) finally hit Hong Kong markets, but trading volumes suggest that the launch of Bitcoin ETFs in the United States set an exceptionally high bar to match.

The six new crypto ETFs' total trading volume at the closing bell on day one in Hong Kong was 87.58 million Hong Kong dollars ($12 million). This number pales in comparison to the first-day trading volume of U.S. Bitcoin ETFs, which was valued at $4.6 billion.

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While we should be taking this Hong Kong ETF for Bitcoin and Ethereum as a good news, the expectations should be managed well as this can never be compared to what just transpired in USA where the market is way bigger and there were then many institutions and people that really waited the ETF approval in January. I would say that the impact is not yet in the numbers but who knows what can be, maybe one year from now there can be an avalanche of support and takers for Bitcoin ETFs in Hong Kong maybe coming from the mainland China though I understand that it can be difficult for Chinese investors to get into this market (based on what I read in the news).

[ABCbits]

Even considering total population between those country (7.5M vs 334M[1]), the difference is very big. I wonder whether ETF isn't popular choice among HK investor or HK investor simply being cautious after looking Bitcoin price post ETF on US.

[1] https://www.worldometers.info/world-population/population-by-country/

[Lucius]

It may be too early to draw conclusions, but if we take into account that mainland Chinese cannot invest in these ETFs, and that the HK ETFs market is estimated at around $50 billion, the conclusion would be that they are a small dwarf compared to the US ETFs market, which is worth trillions of $.

Even considering total population between those country (7.5M vs 334M[1]), the difference is very big. I wonder whether ETF isn't popular choice among HK investor or HK investor simply being cautious after looking Bitcoin price post ETF on US.

It is possible that the timing of the launch has something to do with it, because everyone obviously bet on the halving, and on the other hand, the majority does not even understand what is actually happening then. Maybe now we will have to wait for the halving to start giving its first effects, so that the investors start getting back into the game again.

Most investors still do not want to be exposed to Bitcoin for too long, even though it would very likely bring them a good profit.

[Captain Corporate]

I feel like there wasn't enough marketing to be fair. Marketing for something this size doesn't happen just locally, its a global thing and needs to be consider, plus USA has an advantage of working on it for years and building a lot of news about it everywhere. There are some other nations with Bitcoin ETF as well if I recall correctly and none of them had the money that the USA put into it neither. I think as long as it happens with time, we are going to see more and more, its going to just grow eventually and we just need to make sure that we are going to get what we want from it, we just need to keep it going for as long as possible.