23 May

On May 21, 2024, Ethereum exchange-traded funds (ETFs) in Hong Kong witnessed a surge in daily inflows, marking their highest since their launch on April 30. ChinaAMC's ETF alone attracted over HK$3.77 million in investments, with other ETFs also experiencing significant inflows. Notably, the Hong Kong government recently greenlit Bitcoin and Ethereum spot ETFs, providing traders with a means to invest in cryptocurrencies without directly exposing themselves to their volatile nature. 

Since their inception, Bitcoin spot ETFs have garnered more attention compared to Ethereum ETFs.
This week, there was a notable shift in Ethereum ETF activity. 

On Monday, none of the three Ethereum ETFs managed by ChinaAMC, Harvest Global, Bosera, and HashKey Capital recorded any inflows, indicating a lack of new investor purchases. However, Tuesday saw a reversal in this trend, with investors beginning to pour funds into these ETFs. ChinaAMC's Ethereum ETF saw trading volume exceed 1.28 million shares, significantly higher than its typical 500,000 shares. The other two Ethereum ETFs also experienced an 18% increase in net inflows. This upward trend persisted into Wednesday, with the three funds collectively generating around HK$5 million early in the day.

The heightened interest in Ethereum ETFs may stem from speculation surrounding potential approvals by the US Securities and Exchange Commission (SEC). The SEC's green light for Bitcoin ETFs in January 2024 positioned the US as the first country to do so. Despite this optimism, Hong Kong currently stands as the sole jurisdiction permitting both Bitcoin and Ethereum ETFs.

Bitcoin ETFs have performed impressively in Hong Kong, with both Bitcoin and Ethereum ETFs amassing over HK$87.5 million ($11.2 million) in trading volume on their inaugural day, April 30. Nonetheless, this pales in comparison to the $4.6 billion generated by Bitcoin ETFs in the US on their opening day.

This week, Bitcoin ETFs in Hong Kong continued to attract substantial inflows, with approximately $6.62 million on Monday alone. After 13 days of trading, issuers collectively hold 3,660 BTC, with total net assets reaching approximately $246 million and a traded value of $2.78 million. Monday's inflows were predominantly led by Bosera and HashKey, followed by ChinaAMC and Harvest.

To summarize, while Bitcoin ETFs dominate in terms of daily inflows, Ethereum ETFs in Hong Kong are gaining traction amid speculation surrounding potential SEC approvals in the US. 

Hong Kong's pioneering stance in offering both Bitcoin and Ethereum ETFs signifies a significant stride in mainstreaming cryptocurrency within the financial landscape.

May 2024, Cryptoniteuae

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