Hong Kong's cryptocurrency Etf has disappointed compared to the $5.5 billion U.S. Etf. The debut of these ETFs in Hong Kong failed to meet expectations and led to investor outflows. Bloomberg data shows that inflows into six ETFs for bitcoin and ether fell by an initial 25 million from an initial 293 million.
The Hong Kong #Etf did not perform as well as the U. S. Etf launched on 1/10, with current net inflows of 12.1 billion yen after total volume of 550 billion yen.
Hong Kong's small trading sector is facing challenges and we hope these crypto-ETFs will stimulate trading activity and attract market makers. Hong Kong is competing with Singapore and Dubai to become a #cryptocurrency hub and revive its image as a vibrant financial center, especially after the political crackdown. Surprisingly, despite China's ban on cryptocurrency trading, Beijing is not opposed to sending #cryptocurrencies to Hong Kong.
Le Shi of Auros believes that the sluggish response of the Hong Kong etf is due to two factors: this is the first time the U. S. has launched an etf, and the uncertainty about Chinese cryptocurrencies makes investors cautious. 2
Harvest Global Investments and Consortium launched a #bitcoin and ether ETF in Hong Kong at 4:30am. Those funds are not yet available to mainland Chinese investors, and it's unclear if that will change. Bloomberg's Rebecca Shin sees prospects for the Hong Kong cryptocurrency Etf despite initial setbacks. Total assets exceeding £25,000 is a positive sign. It expects new issuers and predicts that these ETFs could reach £10 billion within 2 years.
Hong Kong is competing with Singapore and Dubai to become a major cryptocurrency hub in an attempt to regain its status as a financial center. Despite Beijing's ban on cryptocurrencies, it doesn't seem to be bothered by Hong Kong's cryptocurrency-friendly policies. Le Shi identifies 2 main reasons for Hong Kong Etf's sluggish response: its previous launch in the US and the uncertainty of cryptocurrency regulation in China, which has made investors hesitant.
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