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April

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Spot

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 Hong Kong’s <a style="color: #0000ff;" href="https://defi-planet.com/2024/04/spot-crypto-etfs-launch-in-hong-kong-creates-alternative-options-for-chinese-investors-industry-stakeholders/">newly launched spot Bitcoin exchange-traded funds (ETFs) </a>are struggling to match the selling and buying pressure of their United States-based counterparts. 
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The debut of the first batch of Hong Kong Bitcoin and Ether-based ETFs on April 30 <a style="color: #0000ff;" href="https://x.com/Excellion/status/1785040628793131358">generated excitement </a>among crypto holders. However, trading activity has been disappointing, with the Hong Kong-based spot ETFs amassing only $12.4 million in trading volume on the first day, according to data from the <a style="color: #0000ff;" href="https://www.hkex.com.hk/Market-Data/Securities-Prices/Exchange-Traded-Products/Exchange-Traded-Products-Quote?sym=3042&amp;sc_lang=en">Hong Kong Stock Exchange</a>. 
The Hong Kong spot Bitcoin ETFs <a style="color: #0000ff;" href="https://twitter.com/jbutterfill/status/1785947989212594184?t=SWlFQXLMz5GMsGs4rCP_8Q&amp;s=19">reportedly </a>have seen net inflows of $217 million this first week of their trading. However, <a style="color: #0000ff;" href="https://dune.com/hildobby/btc-etfs">according to Dune Analytics</a>, this falls short of the $298 million worth of net outflows generated by the 11 U.S. spot Bitcoin ETFs in the same period. 
<blockquote class="twitter-tweet"> 
 meanwhile, Hong Kong has seen US$217m on inflows this week <a href="https://t.co/mLZVLzDQFy">pic.twitter.com/mLZVLzDQFy</a> 
 — James Butterfill (@jbutterfill) <a href="https://twitter.com/jbutterfill/status/1785947989212594184?ref_src=twsrc%5Etfw">May 2, 2024</a>
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<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
The debut of the Hong Kong ETFs seems to have triggered a “sell-the-news” reaction among Bitcoin holders, as BTC fell below the $60,000 mark on May 1, 2024, a level not seen since the end of February, <a href="https://coinmarketcap.com/currencies/bitcoin/">according to CoinMarketCap.</a> 
RELATED: <a style="color: #0000ff;" href="https://defi-planet.com/2024/04/spot-crypto-etfs-launch-in-hong-kong-creates-alternative-options-for-chinese-investors-industry-stakeholders/">Spot Crypto ETFs Launch in Hong Kong Creates Alternative Options for Chinese Investors — Industry Stakeholders</a> 
Institutional inflows from ETFs have played a crucial role in Bitcoin’s rally to new all-time highs. By February 15, Bitcoin ETFs accounted for about 75% of new investment in the cryptocurrency as it surpassed the $50,000 mark, according to <a style="color: #0000ff;" href="https://cryptoquant.com/insights/research/65cce0397f4ffd2b53a998bc-14-February-2024-On-the-back-of-ETF-demand-Bitcoin-Breaches-The-50k-Mark-Amid-Ri">CryptoQuant research</a> report. 
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 “We estimate over 75% of new investments into Bitcoin are coming from these ETFs. Moreover, investment from these ETFs has increased to 2% of the total historical investment in Bitcoin in just one month as measured by the realized market capitalization,” 
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the report said. 
The U.S. spot Bitcoin ETF market is currently facing a downturn as it appears that investors’ excitement is wearing off. Notably, BlackRock’s iShares Bitcoin Trust (iBIT), which has consistently recorded net inflows since its launch, <a href="https://defi-planet.com/2024/05/blackrocks-ishares-bitcoin-trust-records-first-outflow-day-as-u-s-bitcoin-etfs-experience-significant-withdrawals/">recorded its first negative net flow during the trading day ending May 1, 2024.</a> 
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The post <a href="https://defi-planet.com/2024/05/hong-kong-spot-bitcoin-etfs-struggle-to-impress-on-debut-fail-to-match-u-s-etfs-in-trading-volumes/">Hong Kong Spot Bitcoin ETFs Struggle to Impress on Debut, Fail to Match U.S. ETFs in Trading Volumes</a> appeared first on <a href="https://defi-planet.com">DeFi Planet</a>.

Hong Kong Spot Bitcoin ETFs Struggle to Impress on Debut, Fail to Match U.S. ETFs in Trading Volumes

DeFi Planet

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