Asia’s first exchange-traded funds (ETFs) for bitcoin and ether launched in Hong Kong but garnered underwhelming trading volumes, signaling a tepid reception among investors. This lukewarm start impacted cryptocurrency prices, contributing to a noticeable dip in both bitcoin and ether during European trading hours.
Disappointing Debut
The six ETFs, which began trading on Tuesday, collectively achieved a trading volume of just $11 million—significantly below the anticipated $100 million. Of this, bitcoin ETFs accounted for $8.5 million, with ether ETFs making up the remainder. This performance pales in comparison to the U.S. market, where spot BTC ETFs had a first-day trading volume of $655 million and have since attracted nearly $12 billion in investments.
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Following the announcement of the trading volumes, bitcoin’s value dropped nearly 2% in just one hour, falling from $63,300 to below $61,000. Ether experienced a similar fate, decreasing by 2.8% to $3,066. These declines reflect the market’s reaction to the disappointing uptake of the newly listed ETFs in Hong Kong.
Spot vs. Futures ETFs
Spot ETFs, like those launched in Hong Kong, allow investors direct exposure to cryptocurrencies without owning the actual assets. They are generally preferred over futures-based ETFs, which incur rollover costs. However, the initial reception of these spot ETFs in Hong Kong suggests a cautious or hesitant approach from investors in Asia compared to their U.S. counterparts.
