Disappointing Volume For Hong Kong Crypto ETFs Launch, Issues Unfazed By SEC's 'ETH-Security' Debate

The late adopted Hong Kong Bitcoin place ETFs began trading today, but Saw comparatively low volume on their first day. The Hong Kong Securities and Futures Commission (SFC) adopted 6 full place Bitcoin and Ethereum ETFs last week.

Bitcoin Magazine’s Vivek Sun reports that the 3 Bitcoin ETFs that went live overnight include the ChinaAMC Bitcoin ETF, Harvest Bitcoin ETF, and Bosera HashKey Bitcoin ETF.

NEW: beginning ceremony of Hong Kong place #Bitcoin ETFs pic.twitter.com/ux1eb5PqRn

— Bitcoin Magazine (@BitcoinMagazine) April 30, 2024

Despite the excitement surrounding the launch, the full trading volume for all Hong Kong Bitcoin ETFs barn at a modern $8.5 million (HK$67 million) for the first trading day.

Breaking down the individual Bitcoin ETF trading volumes, the ChinaAMC Bitcoin ETF recorded highest volume of HK$37.16 million, the Harvest Bitcoin ETF Saw $17.89 million, and the Bossera HashKey Bitcoin ETF witnessed HK$12.44 million in trading.

The combined Bitcoin and Ethereum ETF trading volume for the day increased to HK$87.58 million dollars ($12 million), as per date on Hong Kong Stock Exchange.

While the trading volumes may see low combined to the U.S. place Bitcoin ETFs, which Saw a stacking $4.6 billion in trading volumes on their first day, manufacture experts reconstruct optimal about the prospects of these products in Hong Kong.

Samson Mow, founder of JAN3 expressed his belief that these ETFs will bear fruit in the long run, despite the first low volume trading day:

"Bitcoin ETFs in HK are going to be big. possibly not on day 1 or 2, but the long word impressions are massive. There is truly nothing else for Chinese investors to put their money into at this time.”

That said, on a comparative context the data is hard disappointing, and as Bloomberg’s ETF guru Eric Balchunas notes, the $12.4 million ‘a LOT for that market-equiv of $1.6b in US. Assets much stronger tho: China AMC reporting $141m in assets (equiv to $22b in US) with $121m of it in btc and $20m of it eh, so eth grabbed 14%.”

Here’s Hong Kong crypto ETFs volume breakdown, all told traded $12.4m, and LOT for that market-equiv of $1.6b in US. Assets much stronger tho: China AMC reporting $141m in assets (equiv to $22b in US) with $121m of it in btc and $20m of it eh, so eth grabbed 14%. All early date,... pic.twitter.com/scEeBYxOsD

— Eric Balchunas (@EricBalchunas) April 30, 2024

In another words, on an “East vs West” comparison, “the US did $740m in assets and $4.6b in trading. These are far below that but if you adjust for the size of their mkt it is diff story: equiv of $25b+ and $1.6b, relatively. For context, China AMC’s Bitcoin ETF is already among Top 20% biggest in that mkt after 1 day’

East vs West: The US did $740m in assets and $4.6b in trading. These are far below that but if you adjust for the size of their mkt it is diff story: equiv of $25b+ and $1.6b, relatively. For context, China AMC’s Bitcoin ETF is already among Top 20% biggest in that mkt after one...

— Eric Balchunas (@EricBalchunas) April 30, 2024

In any case, the launch of Bitcoin ETFs in Hong Kong is expected to attract more organization investors and mainstream adoption of Bitcoin in the region over time. And as the global Bitcoin scenery continues to evolve, Hong Kong’s decision to embrace place Bitcoin ETFs could position the city as a key player in the future of Bitcoin in Asia.

But, possibly more notable in the large image for crypto, CoinTelegraph’s Martin Young reports that the ETF issues in Hong Kong are not included about the crypto crackdown in the United States, which could consequence in regulators classifying Ether as a security.

Speaking at a press conference on April 29 on the eve of the launch of place cryptto ETFs in Hong Kong, the head of digital asset management companies China Asset Management, Zhu Haokang, and the head of custody companies OSL Digital Securities, Wayne Huang, answered questions on the fresh organization investment products.

One of the more notable responses was to a question respecting the world’s first place Ether ETF and who the United States declaring it a safety will have any impact in Hong Kong. Huang responded:

“Probable not, due to the fact that who the United States defines Ethereum as a safety does not affect the independent decision-making of the Hong Kong Securities Regulatory Commission.” [translation]

He added that the Hong Kong Securities and Futures Commission has its own set of procedures for determining whother partial crypto assets are securities and whother retail investors can trade them.

“It will not be affected by different opinions between various departments in the United States, or eventual their own universal definition,” he continued.

He besides emphasized why Hong Kong will be the first in the planet to launch a place Ethereum ETF, alternatively than the United States.

“The regulation of cryptocurrency in the United States has multiple departments speaking out at the same time, or trying to regulate it.”

“Hong Kong has already had a clear definition of Ethereum,” he said before stationing, “Ethereum is not a security.”

He said it is 1 of the 2 assets, including Bitcoin, that can be provided to retail investors.

The U.S. Securities and Exchange Commission is presently investing the Ethereum Foundation in a trial to find who it believes the asset is simply a security.

And just to close out this farce, BitDegree reports that court papers filed by Consensys against the US Securities and Exchange Commission (SEC) have reviewed that The agency, under Chair Gary Gensler, may have hosted Ether (ETH) an “unregistered security” since last year.

I said this on a fresh town hall Spaces (as 1 of the main holidays eth etf ain't happening) and any guy sharply reputted it. Forget who. I think he was a lawyer. Anyway this is for you Holmes: https://t.co/vtxRCbytpq

— Eric Balchunas (@EricBalchunas) April 29, 2024

Interesting, the current position of the Chair of the SEC contradicts his erstwhile beliefs; in 2018, Gensler claimed that over 70% of the crypto market, including Bitcoin, Ether, Litecoin, and Bitcoin Cash, were not securities.

We presume his beliefs will be driven by whatever Liz Warren thinks from now on...