Hong Kong spot crypto ETFs witnessed a meager $7.7 million volume on May 6, way less than the $1.88 billion volume recorded by their U.S. counterparts the previous trading day.
The Hong Kong spot Bitcoin and Ethereum ETF market is recording a slow day at the office, with their discouraging performance further exacerbated by the prevalent turbulence in the Bitcoin (BTC) and broader crypto market. Following their launch, the six spot crypto ETFs have not met expectations from asset managers.
Notably, Chinese blockchain reporter Colin Wu disclosed in a report today that all the six products witnessed a discouraging trade volume of $7.72 million on May 6. While this figure could be deemed fair, they trail when compared with the $1.87 billion recorded by the 11 spot Bitcoin ETFs in the U.S. on May 3, last Friday.
The total trading volume of the six Hong Kong Bitcoin and Ethereum spot ETFs on May 6 was HK$60.41 million, which was only US$7.72 million. The trading volume of 11 Bitcoin spot ETFs in the United States on the previous trading day was US$1.88 billion, which was 268x that of HK.…
— Wu Blockchain (@WuBlockchain) May 6, 2024
With trading data not yet released for the start of the new week, information on the volume of the spot Bitcoin ETFs in the United States for May 6 is not public knowledge yet. However, these products have not recorded anything less than half a billion dollars in 24-hour volume.
Notably, the lowest volume witnessed by the U.S.-based spot Bitcoin ETFs was $643.75 million on Feb. 5, three weeks after their debut. Meanwhile, their largest 24-hour trade volume came up on March 5, when these products saw $9.93 billion in volume, according to market data sourced by The Block.
A Discouraging Start for Hong Kong Spot Crypto ETFs
For context, Hong Kong welcomed six spot crypto ETFs on April 30, with three of these being spot Bitcoin ETFs. This move came up two weeks after the region’s regulatory agency gave a conditional approval for its first spot Bitcoin and Ethereum ETFs.Â
Right before their debut on April 30, expectations were on the high side, with Zhu Haokang, a divisional head at ChinaAMC, one of the ETF issuers, arguing that the spot Bitcoin and Ethereum ETFs in Hong Kong would surpass the trading volume of the U.S.-based products on their debut.
Upon launch, these products only witnessed $112 million in trading volume. For context, the spot Bitcoin ETFs in the U.S. recorded a volume of $4.54 billion on their debut on Jan. 11. Since the launch, the Hong Kong-based products have continued to see declining trade volume, with the recent $7.72 million volume marking a 93% drop from the debut figure.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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