In a significant development for the recently approved Ethereum ETFs in Hong Kong, the ETF product launched by Chinese fund manager ChinaAMC saw a significant increase in net inflows, reaching over 5 million Hong Kong dollars (640 780 US dollars) Wednesday at noon.
The rise follows a previous record of 3.77 million Hong Kong dollars on Tuesday, marking the largest inflow since the ETF Launchwhile investors are expecting the approval of similar products in the United States for the second largest cryptocurrency on the market, which has contributed to the increased interest in these ETFs.
Hong Kong Ethereum ETFs Break Trading Records
According to a South China Morning Post reportAs of Tuesday, the ETF recorded more than 1.28 million shares traded, surpassing the average daily volume of around 500,000 since its April 30 launch.
Meanwhile, this week, the other two Ethereum spot ETFs in Hong Kong, issued by investment firms Harvest Global, Bosera and HashKey Capital, also saw “higher than usual” trading volumes.. Prices of all three ETFs saw an increase of more than 18% on Tuesday.
While Hong Kong’s spot crypto ETFs have been hailed as a milestone in the city’s quest to become a virtual asset hub, their turnover has remained modest for most of the time since their 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 data shows that on Tuesday, Bitcoin Spot ETF’s total net inflow was $306 million, marking seven consecutive days of net inflows.
Grayscale’s ETF, the Grayscale Bitcoin Trust (GBTC), saw a single-day net outflow of $0.00, BlackRock’s IBIT ETF saw a single-day inflow of $290 million, and the Total net asset value of the Bitcoin spot ETF was $58.910 billion.
Market optimism
ETFs are seen as a key way to attract traditional investors to volatile virtual assets, which could drive up prices. However, the initial impact of Hong Kong’s ETF launches on the global cryptocurrency market appears to have been relatively muted.
Bloomberg analysts pointed out that the ETF market in Hong Kong is significantly smaller than that of the United States. Nonetheless, they say the city’s spot crypto ETFs, the first in Asia, play a central role in the global adoption and acceptance of virtual assets.
The recent increase in trading volume of Ethereum ETFs in Hong Kong coincides with a significant rise in cryptocurrency prices after reports suggesting an increased likelihood that the U.S. Securities and Exchange Commission (SEC) will approve Ethereum spot ETFs.
Bloomberg Intelligence ETF analysts Eric Balchunas and James Seyffart recently raised their estimated probability of approval for Ethereum ETFs in the United States from 25 percent to 75 percent, indicating a potential change in the SEC’s position on these products.
ETH, the second-largest cryptocurrency by market capitalization, saw a price rally of more than 20%, surpassing $3,700 this week. The largest cryptocurrency also climbed around 4%, surpassing US$71,000.
Featured image from Shutterstock, chart from TradingView.com
