The BTC ETF in Hong Kong has attracted approximately $500 million, according to Bloomberg. Bloomberg ETF analyst Eric Balchunas believes that the total net asset value (AUM) of both the Spot BTC ETF and Spot ETH ETF in Hong Kong will only reach about $500 million.
The approval of cryptocurrency ETFs is viewed as a positive development for the cryptocurrency market in Hong Kong. Bitcoin (BTC) responded favorably to this news, increasing by 4% on April 15th and momentarily peaking at $66,500.
However, Balchunas thinks that the scale of Hong Kong's ETF market will not be comparable to the vast cryptocurrency ETF market in the United States.
The Bitcoin ETF in the U.S. has garnered over $200 billion in trading volume and $30 billion in new investments since it began trading in January.
Mainland Chinese investors are not permitted to purchase ETFs in Hong Kong, which may restrict substantial capital inflows into these funds.
Furthermore, the cryptocurrency ETFs in Hong Kong are expected to have significantly higher fees than those in the U.S.
🎯 Although the approval of BTC and ETH Spot ETFs is viewed positively for the cryptocurrency market, the limited scale of the Hong Kong ETF market means that experts do not anticipate it attracting significant capital inflows.