FalconX Research Director: Hong Kong Cryptocurrency ETF AUM is still expected to reach $1 billion by the end of the year
David Lawant, head of research at institutional digital asset broker FalconX, has not given up on his predictions for the future development of cryptocurrency ETFs in Hong Kong, China. He said that it is common for ETFs to see a slowdown in inflows after launch and then grow steadily over time, especially during periods of low market volatility, which has been highlighted in recent months.
At present, the asset management scale of Hong Kong Bitcoin and Ethereum spot ETFs is $290.6 million, far less than similar ETFs in the United States (nearly $57 billion). On some trading days, these six funds did not even have net inflows.
However, Lawant believes that the forecast of Hong Kong ETFs reaching $1 billion in assets by the end of this year is still possible. "It may be more realistic to reach this goal by the end of 2025. However, given the fast-paced nature of cryptocurrencies, I would not completely rule out the above possibility," Lawant added.
It also said: "This number will certainly appear small compared to what we see in other countries. But considering the size of the Asian market and its importance to the entire crypto ecosystem, I believe it has the potential to go higher."