Hong Kong’s spot crypto ETFs experienced a lackluster day on May 6, with a trading volume of only $7.7 million, significantly lower than the $1.88 billion volume recorded by their U.S. counterparts the previous day.
The Hong Kong market for Bitcoin and Ethereum ETFs is currently facing challenges, worsened by the turbulence in the Bitcoin and broader crypto market. Since their launch, the six spot crypto ETFs have failed to meet the expectations of asset managers.
Chinese blockchain reporter Colin Wu revealed in a report today that all six products had a disappointing trade volume of $7.72 million on May 6. While this figure may seem reasonable, it pales in comparison to the $1.87 billion recorded by the 11 spot Bitcoin ETFs in the U.S. on May 3, last Friday.
As of now, trading data for the spot Bitcoin ETFs in the United States on May 6 has not been released to the public. However, these products have consistently recorded no less than half a billion dollars in 24-hour volume.
It is worth noting that the lowest volume recorded by the U.S.-based spot Bitcoin ETFs was $643.75 million on February 5, three weeks after their launch. On the other hand, their highest 24-hour trade volume occurred on March 5, when these products reached $9.93 billion in volume, according to market data sourced by The Block.
The start for Hong Kong’s spot crypto ETFs has been discouraging. On April 30, Hong Kong introduced six spot crypto ETFs, including three spot Bitcoin ETFs, following conditional approval from the region’s regulatory agency for its first spot Bitcoin and Ethereum ETFs. Prior to their launch, there were high expectations, with Zhu Haokang, a divisional head at ChinaAMC, one of the ETF issuers, suggesting that Hong Kong’s spot Bitcoin and Ethereum ETFs would surpass the trading volume of the U.S.-based products on their debut.
However, upon launch, these products only managed to achieve a trading volume of $112 million. For comparison, the spot Bitcoin ETFs in the U.S. recorded a volume of $4.54 billion on their debut on January 11. Since then, the Hong Kong-based products have experienced a continuous decline in trade volume, with the recent $7.72 million volume representing a 93% drop from the debut figure.
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