In a significant development for ethereum ETFs recently approved in Hong Kong, the ETF product launched by Chinese fund manager ChinaAMC has seen a significant increase in net inflows, reaching over HK$5 million (US$640,780). ) at noon on Wednesday.
This rise follows a previous high of HK$3.77 million on Tuesday, marking the largest inflow since the ETF launchwhile investors anticipate the approval of similar products in the United States for the second largest cryptocurrency on the market, which has contributed to increased interest in these ETFs.
Hong Kong ethereum ETFs break trading records
According to a morning newspaper in southern China tech/blockchain/article/3263619/ether-etfs-jump-hong-kong-anticipation-us-approval-similar-crypto-products?campaign=3263619&module=perpetual_scroll_0&pgtype=article” target=”_blank” rel=”noopener nofollow”>reportOn Tuesday, the ETF witnessed trading of over 1.28 million shares, surpassing the average daily trading volume of around 500,000 since its launch on April 30.
Meanwhile, this week, the other two ethereum spot ETFs in Hong Kong, issued by investment firms Harvest Global, Bosera and HashKey Capital, also experienced “higher than usual” trading volumes.. The prices of the three ETFs recorded an increase of more than 18 percent on Tuesday.
While Hong Kong's spot crypto ETFs were hailed as an important step in the city's quest to become a virtual asset hub, its turnover has remained modest most days since its launch. Trading volume pales in comparison to spot bitcoin ETFs in the United States, where the products were approved in January.
In figures, SoSo value x.com/WuBlockchain/status/1793130926328930527″ target=”_blank” rel=”noopener nofollow”>data shows that on Tuesday, bitcoin Spot ETF's total net inflows were $306 million, marking seven consecutive days of net inflows.
Grayscale's ETF, Grayscale bitcoin Trust (GBTC), had a single-day net outflow of $0.00, BlackRock's IBIT ETF had a single-day inflow of $290 million, and the total net asset value of the ETF bitcoin spot was $58.91 billion.
Market optimism
ETFs are seen as vital means of attracting mainstream investors to volatile virtual assets, which could boost prices. However, the initial impact of Hong Kong ETF launches on the global cryptocurrency market appears to have been relatively muted.
Bloomberg analysts have noted that Hong Kong's ETF market is substantially smaller than that of the United States. However, they claim that the city's spot crypto ETFs, the first in Asia, play a critical role in the global adoption and acceptance of virtual assets.
The recent surge in ethereum ETF trading volume in Hong Kong coincides with a significant rally in cryptocurrency prices after reports suggesting a higher likelihood of the US Securities and Exchange Commission (SEC) approving ethereum spot ETFs.
Bloomberg Intelligence ETF analysts Eric Balchunas and James Seyffart recently raised their estimated probability of approval for ethereum ETFs in the US from 25 percent to 75 percent, indicating a possible change in the SEC's stance on these products.
eth, the second-largest cryptocurrency by market cap, has seen a price surge of more than 20 percent, surpassing $3,700 this week. The largest cryptocurrency also rose about 4 percent, surpassing $71,000.
Featured image from Shutterstock, chart from TradingView.com
