Analysis of Hong Kong’s Bitcoin Spot ETFs
After a successful debut of Bitcoin Spot ETFs in Hong Kong, Bloomberg Intelligence expert Eric Balchunas took center stage to analyze the historical introduction of these products in the country. Here’s a breakdown of the key insights:
Ants Market vs. US Funds
– Eric Balchunas mentioned that Hong Kong’s Spot Bitcoin ETFs market is significantly smaller than funds in the United States, being just 1/168th of the size.
– The debut of HK spot ETFs coincided well with the US slowdown, leading to significant inflows in Hong Kong that could potentially offset the negative flows in the US market.
Notable Inflows on Day One
– The Human and Machine channel highlighted that Hong Kong’s Bitcoin and Ethereum Spot ETFs raised over HK$11.2 million on their first day, countering the net outflows from the US market.
– Eric Balchunas shared that although he initially projected a $1 billion inflow for the products in two years, the $292 million inflow in assets on day one suggests that his predictions might be accelerated.
Trading Day Performance
– Ethereum spot ETFs captured 15% of the market share on the first day, with investors showing a preference for larger funds despite higher fees.
– ChinaAMC BTC spot ETF (3042 HK) attracted the highest inflow of $124 million on day one, while Harvest Bitcoin Spot ETF (3439 HK) and Bosera Hashkey Bitcoin ETF (3008 HK) also saw significant net inflows.
Asset Calculation Clarification
– Eric Balchunas clarified confusion regarding the $292 million in assets and HK$11.2 million inflows, explaining that the seed money contributed as assets before launch was not considered in the volume calculation.
– In contrast, the US market withholds seed money until the first day to inflate the volume for marketing purposes.
Massive Outflows in the US
– The US market witnessed significant outflows of over $500 million in a single day, marking the fastest-ever selloff of BTC spot ETFs.
– Farside Investors data revealed that Fidelity Wise Origin Bitcoin Fund (FBTC) led the withdrawals with $191.1 million, followed by Grayscale Bitcoin Trust ETF (GBTC) and Blackrock iShares Bitcoin Trust (IBIT).
Hot Take: Impact of ETFs on Global Markets
As Hong Kong’s Bitcoin Spot ETFs attract notable inflows and the US market sees massive outflows, the global impact of these products on the cryptocurrency market remains a topic of interest and speculation. Stay tuned for further developments in the ETF landscape, as shifts in asset flows could signal broader trends in investor sentiment and market dynamics.
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