ETFs
Hong Kong Ether ETFs See Highest Daily Inflow Since Launch
The place ether exchange traded funds (ETFs) launched by Chinese fund manager ChinaAMC saw a significant increase in daily inflows, recording more than HK$5 million (US$640,780) as of midday on Wednesday. This follows an impressive inflow of HK$3.77 million on Tuesday, the largest since the ETF’s inception. This increase in investment activity comes as investors speculate on possible U.S. approval of similar products. Tuesday’s net inflows alone reached HK$3.77 million, demonstrating increased investor interest.
Increased investment in crypto ETFs in Hong Kong
Hong Kong Ether ETFs have recorded their highest daily inflow since launch, signifying a pivotal moment in the evolution of the region’s crypto market. On Monday, May 20, Hong Kong Bitcoin ETFs also reported positive inflows totaling $6.62 million. These Bitcoin ETF now holds 3,660 Bitcoins after just 13 days of trading, with total net assets reaching approximately $246 million and a total traded value of $2.78 million. Spot Bitcoin ETF inflows were led by Bosera and HashKey with $6.29M (95 BTC), followed by China AMC with $7.09K (0.11 BTC) and Harvest with $321K (4 .85 BTC). This notable increase highlights the growing institutional interest and confidence in Bitcoin ETFs within that of Hong Kong Financial markets.
Despite this growth, turnover of Hong Kong spot crypto ETFs has been relatively low most of the time since their launch. Compared to the United States, where spot Bitcoin ETFs were approved in January and enjoy much higher trading volumes, the Hong Kong market remains modest. While ETFs are seen as key to attracting traditional investors to volatile virtual assets and potentially driving up prices, the initial impact of Hong Kong’s ETF launches on the global market cryptocurrency the market was “deafened”. Analysts note that the ETF market in Hong Kong is significantly smaller than that of the United States.
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Anticipation of ETH approval by the US SEC and impact on the market
Bloomberg Intelligence ETF Analysts Eric Balchunas and James Seyffart on Tuesday increased the estimated probability that the SEC will approve ether ETFs from 25% to 75%, indicating a potential change in the regulator’s stance. This development has generated considerable interest and optimism within the market.
Currently, the price of Ethereum (ETH) stands at $3,748.40, with a 24-hour trading volume of $31.7 billion. This represents a price increase of 2.42% over the past 24 hours and a substantial increase of 29.16% over the past week. With a circulating supply of 120 million ETH, Ethereum’s market cap reached $450.3 billion.
The SEC is expected to make a decision on at least one of the ether ETF applications by May 23. This move is highly anticipated as it could significantly influence market dynamics and investor sentiment towards ether ETFs, not only in the United States but globally.
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