Bloomberg analysts, Eric Balchunas and Rebecca Sin, predict that Hong Kong Bitcoin and Ethereum ETFs will only attract $1 billion in assets.
With analyst Rebecca Sin, Bloomberg analyst Eric Balchunas has revised estimates for the prospective assets under management (AUM) of exchange-traded funds (ETFs) for Bitcoin and Ethereum in Hong Kong. The anticipated AUM for Bitcoin and Ethereum ETFs in Hong Kong has been reduced to $1 billion.
Balchunas provided insights suggesting that investors from mainland China might be ineligible to acquire these ETFs because of regulations governing investments in virtual assets. As a result, the analysts have reduced the AUM target for the initial two years from $25 billion to $1 billion.
Notwithstanding the revised forecast, Balchunas maintains a positive assessment of the $1 billion estimate pertaining to the Hong Kong Bitcoin and Ethereum ETFs. However, he underscored that it is considerably inferior to the $25 billion figure that was earlier hypothesized. He also stated that infrastructure improvements will significantly impact the rate at which this revised objective can be achieved.
Furthermore, Balchunas observed that despite the limitations imposed on mainland Chinese investors, alternative investment routes are accessible. Nevertheless, these approaches employ underutilized channels that may encounter regulatory scrutiny.
Additionally, the analyst previously predicted that Hong Kong Bitcoin and Ethereum ETF inflows would be below expectations. The biggest obstacle was that the Hong Kong cryptocurrency market was considerably less than its American counterpart. Furthermore, the limitations imposed on investors from mainland China exacerbate the difficulties.
A significant milestone was reached on Monday, April 14, when the Hong Kong Securities and Futures Commission (SFC) granted official approval for trading Spot Bitcoin ETFs and Ethereum ETFs. Furthermore, Hong Kong has become the inaugural jurisdiction to offer a Spot Ethereum ETF, and the US SEC is currently engaged in comparable deliberations.
China Asset Management, Bosera Capital, and HashKey Capital Limited, among other diverse financial institutions, have been granted authorization by the Hong Kong SFC to introduce exchange-traded funds (ETFs) for Bitcoin and Ethereum. This innovation enables investors to acquire shares of these exchange-traded funds (ETFs) and engage in Bitcoin and Ethereum.
