In the midst of the enthusiasm that followed the approval of bitcoin and ethereum spot exchange-traded funds (ETFs) in Hong KongBloomberg Intelligence analyst Eric Balchunas has made a post highlighting the explosive growth of products in the United States.
US bitcoin ETF Assets Overtake Hong Kong
According to Eric Balchunas, the combined asset pool of US spot bitcoin ETFs is larger than that of the entire Hong Kong ETF market. Bachunas x.com/EricBalchunas/status/1779887591682097165″ target=”_blank” rel=”noopener nofollow”>divulgation demonstrates the huge increase in interest in bitcoin-related financial products among US investors.
Furthermore, it emphasizes how public adoption of cryptocurrencies and their integration into established financial markets is growing. In the ever-evolving world of cryptocurrencies, this revelation indicates a major shift in investor confidence and portfolio allocation techniques.
Balchunas' report coincides with that of his colleague James Seyffart, and also underlines the country's dominance in the bitcoin ETF market. Seyyfart stated that they are more active in companies listed in the US. btc ETF than in any ETF listed in Hong Kong.
The Bloomberg analyst noted that the US ETF market is valued at $9 trillion in assets, compared to the entire Hong Kong ETF market, which is valued at $50 billion. Meanwhile, mainland China boasts an ETF market valued at $325 billion, underscoring the stark disparity in size between the two markets.
The post said:
The U.S. ETF market has nearly $9 trillion in assets—that's trillion with a “T.” The entire Hong Kong ETF market is worth $50 billion. Mainland China ETFs total $325 billion. We're talking about literal differences of orders of magnitude in size and impact.
Seyffart made the claims in response to a pseudonymous x user's post urging investors to sell ethereum using high leverage due to news about btc and eth ETFs will be approved in HK by April 15.
While the user believes that the development could significantly affect the market, Seyffart believes that it is not great news. However, he believes the development could prove to be a significant business in the long term.
To set the record straight, Seyffart stressed that his outlook is not meant to downplay the potential of these ETFs or the notion that they could end up serving as the Asian hub for digital asset exposure on TradFi rails. However, its impact probably won't be as substantial as a launch in US markets.
Most btc ETF Issuers Had No Inflows
In recent days, the US ETF market appears to have witnessed a notable drop in interest. On Monday, Farside revealed that over the past two days, Black RockThe bitcoin btc ETF has been the only fund to see inflows, while all other ETFs have seen zero or no inflows.
Data from Farside shows that Blackrock's IBIT recorded $73.4 million in net inflows on Monday. Meanwhile, other companies recorded $0 in net inflows and Grayscale recorded around $110 million in net outflows.
Featured image from iStock, chart from Tradingview.com
