Hong Kong’s debut of six spot bitcoin and ethereum exchange-traded funds (ETFs) did not meet expectations, bringing in approximately $11.2 million on their first day of trading on April 30. This pales in comparison to the $4.6 billion raised by ten US-based bitcoin ETFs on their launch day. The underperformance of the Hong Kong ETFs is surprising, given earlier claims by Zhu Haokang, an executive at China Asset Management, who had predicted that Hong Kong’s ETFs would outperform those in the US.
China AMC’s funds, however, were able to capture a significant portion of the total amount raised, with approximately $4.75 million. In terms of assets under management (AUM), China AMC’s two funds manage nearly 2,000 BTC and close to 7,000 ETH. Other funds competing against China AMC’s BTC-based fund accounted for 57.59% of the day’s total volume, according to HKEX figures.
While trading volumes for US spot bitcoin ETFs have been declining since March, they still far exceeded Hong Kong’s debut. For example, on April 29, US ETFs posted a trading volume of $1.39 billion. However, these American ETFs experienced outflows of $51.6 million after three consecutive days of reductions.
The lackluster performance of Hong Kong’s ETFs on their first day may prompt adjustments in marketing or management strategies to regain investor confidence and improve performance. The contrasting outcomes between the two markets highlight different investor sentiments and regulatory environments, which are likely to impact future launches and the competitive landscape of cryptocurrency ETFs globally.
What are your thoughts on the performance of the Hong Kong spot crypto ETFs on their first day of trading? Feel free to share your opinions in the comments section below.
