After the U.S. Securities and Exchange Commission (SEC) approved multiple Bitcoin spot ETFs in early January this year, the Hong Kong Securities Regulatory Commission also approved a total of 6 Bitcoin and Ethereum funds from the three major funds Boshi, ChinaAMC and Harvest in mid-April. Application for spot ETF.
However, compared with the United States, Hong Kong’s Bitcoin and Ethereum spot ETFs have not performed well since their listing. The trading volume on the first day was only HK$87.58 million, which was less than 1% of the US$4.6 billion trading volume of the US Bitcoin spot ETF on the day it was listed. ; In addition, in early August, according to SoSoValue data, the Hong Kong Bitcoin and Ethereum spot ETFs also experienced a situation where the net subscription and net redemption volume were 0 for many days.
Note: Although SoSoValue later officially stated that Hong Kong crypto ETF supports cash and physical subscription, since the ETF shares purchased through physical BTC or ETH physical subscription will not generate cash inflow of the asset, it cannot simply be included in the daily net Inflow statistics; but it still cannot change the sluggish trading situation in the Hong Kong market.
Hong Kong will approve Ethereum spot ETF staking as soon as this year
However, Andrew Vranjes, international director and vice president of blockchain infrastructure platform Blockdaemon, said at the TOKEN2049 event held in Singapore recently that Blockdaemon is working closely with Hong Kong crypto ETF issuers and is expected to launch a viable Ethernet with local regulators as soon as this year. Fang spot ETF pledge function:
Hong Kong regulators may approve the staking feature under certain conditions.
We are positive about this as the current dialogue is relatively ideal. Let's see how the market develops. There may be a model that allows accredited investors to choose.
I think we're pretty close to making that announcement at this stage.
How are Hong Kong crypto ETFs currently performing?
According to the latest data from SoSoValue, as of September 19, Hong Kong’s spot Bitcoin ETF had a single-day net inflow of 15.95 BTC, a total holding of 2,300 BTC, and a capital scale of US$143 million, accounting for only 548.5% of the US Bitcoin spot ETF. 0.26% of US$1 billion.
On the other hand, the total holdings of the Hong Kong Ethereum Spot ETF are 1,464 ETH and the capital size is US$33.73 million, which is also far lower than the US$6.3 billion of the US Ethereum Spot ETF.
However, since the US Ethereum spot ETF does not allow staking, whether Hong Kong can bring more profits to users through staking and overtake in a corner deserves our continued attention.
