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Hong Kong’s six new spot Bitcoin and Ethereum ETFs traded more than $80 million Hong Kong dollars (HKD), or about $10 million worth of shares, when they debuted on Tuesday, according to Hong Kong exchange data.
Accordingly, Hong Kong, a special administrative region of China, became the first in Asia to allow trading of virtual asset ETFs. The Hong Kong Exchange said in a press release that investor interest in virtual asset ETFs has grown since the digital asset futures-based fund was first launched in late 2022. Experts predict that the introduction of new spot ETFs could generate more than $25 billion in revenue for the Hong Kong market. The market must be opened to mainland Chinese investors.
The average daily trading volume (ADT) of the three futures ETFs during the first quarter of 2024 was HK$51.3 million ($6.5 million), up from HK$8.9 million ($1 million) during the same period in 2023, according to the exchange.
Relatively speaking, the six new spot funds have already surpassed the fast-growing Bitcoin and Ethereum futures among Hong Kong traders. However, the new spot ETF showed much less upside compared to the U.S. spot Bitcoin ETF when it began trading in January.
In its long-awaited debut, the US Bitcoin ETF recorded $4.5 billion worth of transactions. As of this writing, US ETFs have held over 215,000 BTC (worth approximately $11.9 billion at current prices) to back outstanding shares.
Harvest Global Investments, China Asset Management, Bosera, and Hashkey now offer spot Bitcoin and Ethereum ETFs, respectively. Overall, the Bitcoin ETF outperformed the Ethereum ETF by the close of the Hong Kong market.
Shares of the Bitcoin ETF were up about 2% on the first day, while the Ethereum ETF was down about 0.5% by the close of trading in Hong Kong.
New Bitcoin funds Harvest Bitcoin Spot ETF (HGI BTC), Bosera Hashkey Bitcoin ETF (BOS HSK BTC), and ChinaAMC Bitcoin ETF (CAM BTC) recorded $7.85 worth of sales by market close.
ChinaAMC’s fund dominated on the first day of trading, accounting for 57% of all Bitcoin ETF sales. The Harvest ETF accounted for 29% and the Bosera Hashkey fund accounted for the remainder.
Among the three Ethereum funds, all from the same issuer, the split was roughly the same. ChinaAMC’s fund accounted for 65% of the first day’s sales, Harvest accounted for another 25% and Bosera Hashkey made up the remainder.