To counter the influence of the US-based spot Bitcoin ETFs, the Hong Kong-based spot Bitcoin ETFs are going to have to draw more retail and institutional investors for them to be highly effective.
The Hong Kong-based Bitcoin spot ETFs have reached HK$ 2 billion (around $256 million) in AUM. Hong Kong Bitcoin BTC has tickers down $64,168 On the whole, ETFs have been off to a slightly slower beginning than those in the United States.
Analyzing the SoSo Value data, three spot BTC ETFs in Hong Kong added about 247 BTC in one week to their total assets which are close to 4,450 BTC now. It currently targets the ETFs with about HK$2 of total AUM. 1 billion ($269 million).
ETFs from China Asset Management and Harvest Asset Management — cooperating with the provider of digital asset trading services OSL — have equated to more than one HK$. $167 billion of assets under management (AUM) by enrolling 150 million Britons and 3 billion individuals around the globe. The third is called Bitcoin ETF and it holds HK$776 million ($99. 5 million) of Bitcoins, which is about 42% of the overall market.
Compared to the US where there are 11 ways for Hong Kong investors to invest directly in BTC, the choices are limited for the latter.
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A slower start than the US
However, it is noteworthy that even after the recent inflows the growth of the spot Bitcoin ETFs has been comparatively lower than the courses in the US. At the time of their creation on April 30, the ETFs garnered a total of $262 million of fund inflows in the first week of trading, most of which were injected prior to the opening on May 7.
In fact, total inflows through actual assets in the first week stood at $14 million which is a far cry from the billions that spot Bitcoin ETFs attracted when they debuted in January this year.
This is why Hong Kong has been struggling to establish itself for a cryptocurrency investment destination.
This was underscored by ETF analyst at Bloomberg, Rebecca Sin noted that the focused and in-kind ETF creation strategy presents the city with a lucrative chance of raising it fund and trading activity. Despite this though, Hong Kong has not attained the levels of the US market in terms of investors’ attention and fund flow.