[Blockchain Today Reporter Jihye Han] A Bitcoin spot exchange-traded fund (ETF) was recently launched in Hong Kong, but on the 2nd (local time), the inflow of funds was not enough to cover the outflow of the U.S. Bitcoin spot ETF. The Telegraph reported.
James Butterfill, head of research at CoinShares, said in an X post today that Hong Kong's Bitcoin spot ETF saw net inflows of $217 million this week. These inflows are smaller than the $298 million net outflow from 11 U.S. Bitcoin spot ETFs over the same period, according to cryptocurrency data platform Dune.
Institutional inflows through ETFs have played a key role in helping Bitcoin reach its current all-time high. Bitcoin ETFs accounted for about 75% of new investments in Bitcoin as of February 15, as Bitcoin surpassed $50,000, according to CryptoQuant research.
Hong Kong's first Bitcoin and Ethereum-based ETF was launched for trading on April 30, raising expectations among cryptocurrency investors, but trading activity was sluggish. The Hong Kong-based ETF's first-day trading volume was just $12.4 million, which pales in comparison to the US-based spot Bitcoin ETF's first-day trading volume of $4.6 billion.
However, Bloomberg ETF analyst Eric Balchunas said on this day, "This is a high figure considering the size of the Hong Kong market. $12.4 million in Hong Kong is equivalent to $1.6 billion worth of trading volume in the United States."
James Wo, founder and CEO of cryptocurrency fund DFG, said that although the inflows were relatively small, the debut of the Hong Kong ETF could set an important precedent for other jurisdictions. “Hong Kong’s ETF allows cryptocurrency exposure to Asian markets,” he said. “More countries are likely to follow Hong Kong’s lead, which could push prices higher in the long term.”
hjh@blockchaintoday.co.kr
