Net inflows into Hong Kong ETFs could not make up for the selling pressure in the United States, and stock prices fell by more than 7% on May 2

The recent launch of a Bitcoin and Ethereum ETF in Hong Kong has attracted a lot of attention. Despite the early excitement, these new additions don't appear to be enough to offset the selling pressure coming from U.S. ETFs.

Hong Kong’s trading volume is much lower than that of the United States

The Hong Kong spot Bitcoin ETF’s debut was overshadowed by heavy selling activity from similar funds in the United States.

The trading volume of Hong Kong ETFs on the first day of trading, including BTC and ETFs, was only more than US$12 million, which is negligible compared with the US$4.6 billion of US ETFs on the first day, reflecting the smaller size of the Hong Kong market. The trading volume on 5/2 was HK$33.14 million (US$4.24 million), and the stock price fell by more than 7%.

(There is a huge gap between the trading volume of Hong Kong cryptocurrency ETFs and the United States. Among the six ETFs, China AMC Fund has the highest market share)

Hong Kong ETFs impact smaller inflows

CoinShares researchers used the Hong Kong Exchange’s net asset inflows in the past week to deduce the ETF’s net inflows: $217 million.

On April 30 and May 1 alone, U.S. ETFs had outflows of US$160 million and US$560 million.

Industry hopes other countries will follow suit

Market analysts believe that while Hong Kong's ETFs represent a critical moment, their impact is currently limited. Industry players are counting on peripheral influence: Because other Asian markets are likely to follow Hong Kong's lead, these ETFs could contribute to long-term price gains, said James Wo, chief executive of DFG.

While Hong Kong’s entry into the cryptocurrency ETF market was historic, its immediate effect was not as transformative as some had hoped. The continued dominance of U.S. ETFs and the inherent volatility of cryptocurrency markets suggest that the community should balance their expectations with cautious optimism. As the global financial technology landscape continues to evolve, these diverse market interactions will undoubtedly play a key role in shaping the future trajectory of cryptocurrency prices.

This article Net inflows into Hong Kong ETFs cannot make up for the selling pressure in the United States, and the stock prices fell more than 7% on 5/2 first appeared on Lian News ABMedia.