Hong Kong Ether ETFs witness record inflow, possibly expecting US SEC approval. Trade volume boosts institutional interest.
The spot ether exchange-traded funds (ETFs) introduced by Chinese fund manager ChinaAMC considerably increased daily inflows, totalling over HK$5 million (US$640,780) as of midday Wednesday.
This follows the highest inflow of HK$3.77 million since the ETF’s inception on Tuesday.
Investors are increasing their investment activity in anticipation of possible US approval of comparable products.
The HK$3.77 million in net inflows on Tuesday alone demonstrated increased investor interest.
Hong Kong Crypto ETF Investments Rise
Since their inception, Hong Kong Ether ETFs have received their highest daily inflow, which signifies a turning point in the region’s evolving cryptocurrency market.
Additionally, Bitcoin ETFs in Hong Kong reported positive inflows of $6.62 million on Monday, May 20.
After just 13 days of trading, these Bitcoin ETFs have amassed 3,660 Bitcoins, with a total traded value of $2.78 million and an estimated net asset value of $246 million.
Bosera & HashKey emerged as the primary contributors of $6.29 million (95 BTC) to the spot Bitcoin ETF inflows. China AMC contributed $7.09k (0.11 BTC), while Harvest contributed $321k (4 ALM).
The significant upswing highlights the growing attention and trust from institutions in Bitcoin exchange-traded funds (ETFs) within the financial markets of Hong Kong.
Since their inception, Hong Kong spot crypto ETFs have experienced comparatively modest daily turnover on most days despite this growth.
Hong Kong’s market remains modest compared to the United States, where spot Bitcoin ETFs were approved in January and experienced significantly higher trading volumes.
Although ETFs are essential for potentially bolstering prices and attracting mainstream investors to volatile virtual assets, the initial impact of Hong Kong’s ETF launches on the global cryptocurrency market has been “muted.”
According to analysts, the Hong Kong ETF market is considerably smaller than its American counterpart.
Market Impact and Anticipation of the US SEC’s Approval of ETH
Tuesday, Eric Balchunas and James Seyffart, ETF analysts at Bloomberg Intelligence, increased the likelihood that the SEC will approve ether ETFs from 25% to 75%, suggesting a possible change in the regulatory agency’s position.
This advancement has generated significant enthusiasm and curiosity in the market.
Ethereum (ETH) is valued at $3,748.40, accompanied by a 24-hour trading volume of $31.7 billion.
This signifies a 29.16% increase in price over the previous week and a 2.42% increase over the last 24 hours.
Ethereum has accumulated 120 million ETH in circulation and a market capitalization of $450.3 billion.
The SEC is likely to decide on at least one of the ether ETF applications by May 23.
This decision is speculated to be awaited due to its potential to profoundly impact market dynamics and investor sentiment concerning ether exchange-traded funds (ETFs) within and globally.
