Bloomberg analysts: Hong Kong spot Bitcoin and Ethereum ETFs are expected to see inflows of $500 million
Golden Finance reported that Eric Balchunas, senior ETF analyst at Bloomberg, posted on social media that the Hong Kong spot Bitcoin ETF has been approved to exist, but has not yet been launched. There are rumors that it will be launched next week. It is expected that there will not be much flow in the Hong Kong spot Bitcoin ETF, and the estimated scale of capital inflow may be US$500 million for the following reasons: 1. The Hong Kong ETF market is very small, only US$50 billion, and mainland users still cannot buy it, at least according to official requirements. 2. The three approved spot Bitcoin ETF issuers (Bosera, Huaxia, and Harvest) are small in scale, and no large institutions like BlackRock are involved yet. 3. The liquidity/efficiency of the underlying ecosystem is low = these ETFs may have large spreads and Prem discounts. 4. The transaction fee may be 1-2%, which is higher than the US spot Bitcoin ETF. Eric added that since the Ethereum ETF has also been approved, the expected capital inflow of US$500 million is the sum of all these projects for Bitcoin and Ethereum ETFs.