Ether ETFs jump in Hong Kong in anticipation of US approval for similar crypto products
- The prices of Hong Kong’s three spot ether ETFs jumped by more than 18 per cent on Tuesday, as trading volume picked up this week
- The US SEC is expected to approve ether ETFs in the US this week after approving bitcoin ETFs in January
The spot ether exchange-traded fund (ETF) launched by Chinese fund manager ChinaAMC saw more than HK$5 million (US$640,780) in net inflows as of mid-day Wednesday, after reaching HK$3.77 million on Tuesday, the largest since launch, as investors anticipate US approval of similar products.
The ETF saw more than 1.28 million shares traded on Tuesday. On most days since its April 30 launch, trades have lingered around 500,000 shares, according to Hong Kong stock exchange data. On Tuesday, net inflows were HK$3.77 million.
The other two spot ether ETFs in Hong Kong, issued by investment firms Harvest Global, Bosera and HashKey Capital, also saw higher-than-usual volumes this week. The prices of all three ETFs climbed by more than 18 per cent on Tuesday.
The turnover of Hong Kong’s spot crypto ETFs, despite being hailed as a major step in the city’s pursuit to become a virtual asset hub, has remained meagre on most days since their launch. The trading volume is a trickle compared with that of spot bitcoin ETFs in the US, which approved the products in January.
Analysts have pointed out that Hong Kong’s ETF market is significantly smaller than that of the US, and argued that the city’s spot crypto ETFs – the first of their kind in Asia – are important for the global adoption and acceptance of virtual assets.
