Surge in Inflows to Hong Kong Ether ETFs as US Approval Nears

Investors are anticipating the potential approval of similar products in the US, leading to increased investment activity. ChinaAMC’s spot ether exchange-traded funds (ETFs) in Hong Kong experienced a significant daily influx of nearly HK$5 million (US$640,780), following the record-breaking inflow of HK$3.77 million on Tuesday. This surge in investment indicates a turning point in Hong Kong’s cryptocurrency market, with the highest daily inflow into Ether ETFs since their launch. Bitcoin ETFs in Hong Kong also saw positive inflows of $6.62 million on May 20th, with significant growth in net assets, traded value, and Bitcoin holdings. However, despite these developments, spot crypto ETFs in Hong Kong have relatively low trading volumes compared to the US, where spot Bitcoin ETFs have been permitted since January and have larger trading volumes. The impact of ETF debuts in Hong Kong on the global cryptocurrency market has been somewhat muted, despite the belief that ETFs are crucial for attracting institutional capital and driving up prices.