Bitcoin on Track for Its Worst Monthly Close in 16 Months After Launch of HK BTC and ETH ETFs Disappoints

by

As an analyst with extensive experience in the cryptocurrency market, I find ChinaAMC’s confidence in the trading volume of their new Bitcoin and Ethereum ETFs on the debut day to be both commendable and potentially ambitious. The company aims to surpass the $125 million benchmark achieved by ten US Bitcoin spot ETF issuers in January 2024, and set a record for the highest trading volume among Hong Kong issuers.

As an analyst, I had the opportunity to attend ChinaAMC (Hong Kong) Limited’s press briefing held on the 29th of April. During this event, they announced the upcoming launch of two new exchange-traded funds (ETFs): the Spot ChinaAMC Bitcoin ETF and the Spot ChinaAMC Ethereum ETF. These funds are scheduled to debut at 1:30 a.m. UTC (9:30 a.m. Hong Kong time) on the 30th of April.

According to a report from Foresight News, Zhu Haokang, the head of digital asset management and family wealth at ChinaAMC (Hong Kong), expects the trading volume for their virtual asset spot ETFs to surpass the $125 million mark set by ten US Bitcoin spot ETF issuers on January 10 this year during their debut day. Furthermore, ChinaAMC aims to establish a new record for the highest first-day trading volume among the three ETF issuers in Hong Kong.

China Asset Management Company (AMC) is strongly convinced that Hong Kong will surpass the US in terms of Bitcoin Exchange-Traded Fund (ETF) inflows and trading volume during its launch, which is imminently starting. Furthermore, regions such as Singapore and the Middle East are anticipated to express interest in these ETFs, even though Chinese mainland investments are currently restricted.

— Eric Balchunas (@EricBalchunas) April 29, 2024

As a financial analyst, I’m excited to report that today saw the launch of six Bitcoin and Ethereum spot exchange-traded funds (ETFs) on the Hong Kong Stock Exchange. This marks the first time such products are available in Asia, positioning the region as a significant player in the crypto market and strengthening its reputation as a crypto hub.

Six newly listed ETFs on Hong Kong Exchanges and Clearing Ltd. (HKEX) include the Bosera HashKey Bitcoin ETF (ticker symbol 3008.HK), Bosera HashKey Ether ETF (3009.HK), ChinaAMC Bitcoin ETF (3042.HK), ChinaAMC Ether ETF (3046.HK), Harvest Bitcoin Spot ETF (3439.HK), and Harvest Ether Spot ETF (3179.HK).

Sadly, the reality of today’s launch did not live up to pre-launch expectations:

Disappointing but still early days.— Bitcoin Archive (@BTC_Archive) April 30, 2024

Sina G., the Co-Founder and COO of 21st Capital, reported that $8.8 billion and $2.6 billion flowed into the newly established Bitcoin and Ethereum spot ETFs based in Hong Kong, respectively.

2/ Trading Volume

Bitcoin Spot ETF: $8.8 million
Ether Spot ETF: $2.6 million, 29% vs. Bitcoin

— Sinz 🗝️⚡ 21st.Capital (@Sina_21st) April 30, 2024

He went on to say:

“ETFs with in-kind creation/redemption allow for deposit and withdrawal of Bitcoin as an alternative to cash. However, these are off-limits for investors based in Mainland China. Consequently, their trading volumes are significantly lower compared to their US counterparts, such as IBIT ($1B). As a result, the initial trading activity appears minimal, with only about 1% of the US volume being transacted on day one. Nevertheless, I anticipate that in the upcoming months, investors from Mainland China will find ways to invest in these Hong Kong ETFs through various channels.”

At present, approximately $61,233 is the going rate for one Bitcoin as of 12:30 p.m. UTC on April 30. This represents a decrease of 1.8% within the last 24 hours.

As a crypto investor and analyst following the market closely, I’ve noticed that Bitcoin experienced its most dismal monthly closing price in the past 16 months.

As a researcher studying the cryptocurrency market, I’ve observed that Bitcoin is projected to have its most disappointing monthly closure in the past 16 months. However, it’s essential not to jump to conclusions or panic just yet. After all, we’ve seen significant growth over the last twelve months, with Bitcoin’s value more than doubling.

— Crypto Rand (@crypto_rand) April 30, 2024

Read More

2024-04-30 15:55