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Bitcoin Slips Under $62K as Hong Kong ETFs Disappoint

Apr 29, 2024
    BTC, ETH nurse losses after weak demand for Hong Kong ETFs.The six ETFs registered a first-day trading volume of just $11 million.
As a seasoned crypto investor with a keen interest in market trends and developments, I find the weak demand for Hong Kong’s newly listed Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs) disheartening. The poor uptake of these ETFs, as evidenced by their first-day trading volume of just $11 million, has put downward pressure on both BTC and ETH prices during European hours.As a researcher studying the cryptocurrency market, I’ve observed that Bitcoin (BTC) experienced selling pressure during European trading hours following the release of data indicating subpar demand for recently launched exchange-traded funds (ETFs) based on Bitcoin and Ethereum in Hong Kong.
At approximately 09:00 UTC, the cryptocurrency with the largest market capitalization saw a significant drop of almost 2%, bringing its value down from around $63,300 to under $61,000 within an hour. Data from CoinDesk indicates this decrease. In the meantime, Ether (ETH), the second most valuable cryptocurrency, experienced a decline of approximately 2.8%, dropping to $3,066.

As a researcher studying the Hong Kong stock exchange, I was disappointed to observe that the six newly listed ETFs failed to generate the anticipated trading volume during their debut on Tuesday. The total trading volume amounted to only $11 million, significantly lower than the projected $100 million. Among this figure, Bitcoin ETFs accounted for approximately $8.5 million, while ether ETFs contributed the remaining portion.

The total amount amassed so far is considerably less than the initial $655 million raised by U.S.-listed Bitcoin spot ETFs during their debut on January 11. Over a dozen of these ETFs have commenced trading in the U.S., attracting approximately $12 billion in investments since then. However, inflows have recently dwindled, putting a halt to bitcoin’s upward trend.

Investors can gain crypto exposure through Spot ETFs without actually holding the digital currency. These types of Exchange-Traded Funds (ETFs) are preferred over futures-based ETFs due to their absence of rollover expenses.

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2024-04-30 12:46