The Hong Kong Securities and Futures Commission (SFC) approved the Ethereum spot ETF in April, but since its launch, the trading volume has been consistently low, even lagging behind the trading volume in the United States by a thousand times. This article is sourced from “inpower Wang Jun” and compiled, translated, and written by Foresight News.
(Background:
Wintermute market maker enters Hong Kong! Announces liquidity provision for local Bitcoin and Ethereum spot ETFs.
)
Note: This article was written on the day before the official approval of the Ethereum spot ETF in the United States on May 23.
Recently, there has been a lot of buzz about the approval of the Ethereum spot ETF in the United States, causing Ethereum to surge by 20%. In fact, Hong Kong had already approved the Ethereum spot ETF last month, but at that time, there was no significant impact on the Ethereum price.
In the context of Ethereum’s skyrocketing, the net inflow of the three Hong Kong institutions’ Ethereum spot ETFs was only 62.8.
This performance is even worse than that of a retail fan on my Binance Plaza.
The performance of the Ethereum ETF in Hong Kong
The Ethereum ETF in Hong Kong has not been performing well not only yesterday, but since its issuance:
Apart from some inflows on the first day of issuance, the trading volume has been relatively low for a long time. And it’s not just the Ethereum ETF, but the Bitcoin ETF as well:
Apart from more than 3,000 net inflows of Bitcoin on the first day, the following days also saw relatively low trading volume. In the figure below, let’s compare the data of the US Bitcoin spot ETF. The difference in trading volume between Hong Kong and the US can be up to a thousand times! It’s worth noting that the trading volume of Hong Kong and US stocks is only 40 times apart.
What about the future?
However, now all mainland users, regardless of whether they have opened Hong Kong stock accounts or have access to the North-South Connect, cannot purchase Hong Kong financial products related to cryptocurrencies. It seems that apart from mainland Chinese investors, compliant institutions in Hong Kong may find it difficult to attract others at the moment.
The public fund companies supporting BTC/ETH spot ETF in Hong Kong include Bosera Bitcoin ETF (03008.HK), Bosera Ethereum ETF (03009.HK), CSOP Bitcoin (03439.HK), Huatai Bitcoin (03042.HK), CSOP Ethereum (03179.HK), and Huatai Ethereum (03046.HK).
These companies are all well-established and reputable funds, so it’s not fair to say that they lack strength. Not only do these spot ETFs have low trading volume, but the exchanges that have obtained regulatory licenses in Hong Kong have also had little impact on the liquidity of cryptocurrencies in this round of market trends.
Hong Kong’s cryptocurrency-friendly policies currently seem a bit like playing house for self-entertainment.
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