Bitcoin Spot ETFs Debut in Hong Kong
April 30 marks a significant milestone in the crypto market’s history, underscoring Bitcoin’s growing acceptance. Hong Kong is introducing spot ETFs that could potentially serve as a hub for Asian investments.
The launch of similar crypto funds in the US has been a driving force behind the crypto market’s performance this year, attracting net inflows of $12 billion and propelling Bitcoin’s price by 37% to $63.3k.
Among these, BlackRock’s fund saw remarkable success, raising $15.5 billion in investments, while Grayscale’s fund, previously a trust fund, faced challenges.
BlackRock and Fidelity funds emerged as the world’s fastest-growing ETFs by the end of Q1. Zhu Haokang, executive director of China Asset Management (one of the Hong Kong ETFs), anticipates that the trading volume of Chinese products on the launch day could surpass their US counterparts.
Independent estimates regarding the potential for Hong Kong ETFs to accumulate investments vary widely, averaging between $0.5 billion to $2 billion in the first year. This conservative forecast is attributed to limitations on attracting broad capital from mainland China due to restrictions imposed on organizations as early as 2021.
The primary expectations hinge on institutional players from Asia, as Hong Kong’s domestic market lacks significant traction. Presently, existing crypto futures ETFs manage a modest $170 million, while BITO alone in the US operates with $2.8 billion.
Given these factors, the launch of ETFs is unlikely to have a notable impact on crypto value in the immediate future.
Nonetheless, the emergence of exchange-traded products featuring Bitcoin globally signals a positive trajectory for the industry. Bloomberg reported, citing an anonymous source, the potential for spot ETFs to debut in Australia this year, marking a significant step toward global acceptance of Bitcoin.
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