YEREVAN (CoinChapter.com) — Hong Kong’s spot Bitcoin ETFs have crossed HK$2 billion ($256 million) in assets under management (AUM). Despite this achievement, these ETFs still face challenges in competing with U.S. Bitcoin ETFs.
According to SoSo Value, the three spot Bitcoin ETFs in Hong Kong saw a net inflow of 247 BTC last week, bringing their total holdings to 4,450 BTC. This increased their total AUM to HK$2.1 billion ($269 million).
The Bitcoin ETFs operated by China Asset Management and Harvest Asset Management, in partnership with OSL, account for HK$1.3 billion ($167 million) in AUM. The third spot Bitcoin ETF, which is not affiliated with OSL, holds HK$776 million ($99.5 million), representing 42% of the market.
HK Bitcoin ETFs Lag Behind U.S. Despite Strong Initial Interest
When Hong Kong’s spot Bitcoin ETFs launched on April 30, they attracted $262 million in the first week. However, most of this was subscribed before the listings went live. Actual inflows were $14 million. In contrast, U.S. Bitcoin ETFs saw billions in inflows during their first week in January.
Bloomberg ETF analyst Rebecca Sin noted that Hong Kong’s in-kind ETF creation model could increase AUM and trading volume. However, Hong Kong’s Bitcoin ETFs have not yet caught up with the U.S. market.
HK Bitcoin Investors Have Limited Options, May Be Slowing Growth Compared to U.S.
Hong Kong Bitcoin investors have fewer options compared to U.S. investors. While the U.S. offers 11 Bitcoin ETFs, Hong Kong investors have only three options. This could be a factor in the slower growth of Hong Kong’s Bitcoin ETFs.
Hong Kong Bitcoin ETFs have reached a notable AUM milestone but continue to grow at a slower pace than U.S. Bitcoin ETFs. The focus remains on attracting more investors and expanding product offerings to compete more effectively.
As of August 24, 2024, the price of Bitcoin stands at $64,182.59, reflecting a 5.0% increase in the last 24 hours. The 24-hour trading volume is $44.05 billion, with a market cap of $1.27 trillion. The circulating supply is 19,744,496 BTC, with a total supply of 21,000,000 BTC.
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