Hong Kong Crypto ETF Issuers Foresee $300M First-Day Inflows

• Spot crypto ETFs have begun trading in Hong Kong.
• The issuers of the ETFs anticipate a massive combined inflow on the first day of trading.
• Some project the ETFs to become three times bigger than their U.S. counterparts.

The issuers of Hong Kong-listed spot crypto exchange-traded funds (ETFs) anticipate hundreds of millions of dollars in total first-day inflows inclined in favor of the Bitcoin funds.

Hong Kong debuted Asia’s first batch of six spot Bitcoin and Ether ETFs on April 30. The ETFs were issued by three Chinese asset managers, including Harvest Global Investments, Bosera Asset Management, and China Asset Management.

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ETF Issuers Anticipate $300M Inflows

On Tuesday, Bloomberg Intelligence’s Rebecca Sin revealed that the issuers of the six new Hong Kong spot-crypto ETFs anticipated “in the region of $300 million” in combined first-day inflows, possibly emanating from Asia Pacific’s crypto exchanges, market makers, and Chinese wealth parked in the city.

While Sin estimated the funds could rake in as much as $1 billion “over two years,” Harvest Global CEO Han Tongli dissented from the projection, noting that it was “too small.”

Per Tongli, Hong Kong ETFs are poised for a vertical takeoff and could be three times bigger than their U.S. counterparts because financial products and services based in the city are “accepted by investors both in the West and in the East.”

The CEO further said that adopting an in-kind ETF subscription and redemption mechanism sets the newly launched funds apart, enhancing their appeal and demand.

Forecasts aside, the whole crypto industry is keen to see how the funds will perform and whether they’ll counteract the $4.6 billion trading volume U.S.-listed ETFs witnessed when they began trading in January.

In the meantime, CNBC reported that Spot bitcoin ETFs by ChinaAMC, Bosera HashKey, and Harvest topped 3% higher in early Tuesday trading before paring some gains to trade by about 1.5% higher. The three other funds traded above 1% in the morning but slid into the negative territory by late afternoon.

Read how Fidelity’s U.S.-listed Bitcoin ETF recorded its first outflow:
Fidelity Bitcoin ETF Bleeds Millions for the First Time

Stay updated on how Morgan Stanley is poised to supercharge Bitcoin ETF demand:
Morgan Stanley To Supercharge Bitcoin ETF Demand: Here’s How