Analysts Evaluate Hong Kong Bitcoin ETFs’ Disappointing Debut

• Hong Bitcoin ETFs have recently gone live for sale. 
• The investment vehicle’s debut failed to meet market expectations.
• Bitcoin ETF analysts have weighed in on the asset’s first-day performance.

The record-breaking success of Bitcoin ETFs upon launch in the United States has sparked a global interest in the asset class. Recently launched in Hong Kong, the promise of even broader adoption has driven excitement for the launched asset, heightening hopes for impressive inflows.

However, contrary to expectations, the debut of the exchange-traded funds has not gone off to a good start.

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Hong Kong Bitcoin ETF: A Flop?

The newly launched asset class raked in a total of $141 million on its first day of trade, Tuesday, April 20, raising questions of performance among experts. Led by issuer ChinaAMC with $123 million, the cumulative volume contrasts sharply with the forecasted $300 million before launch, falling significantly behind the U.S. record of $4.6 billion.

Weighing in on the performance, analyst James Seyffart opined that the six Hong Kong spot ETFs did not “live up to expectations,” significantly underperforming below the record standards set by their U.S. counterparts.

ETF analyst Eric Balchunas also reiterated a previous warning against the overhype of the newly launched asset. Factoring the market size, Balchunas emphasized that the Hong Kong market is relatively smaller compared to the US and should not be equated similarly.

However, both Seyffart and Balchunas added that the performance was significant within the local market context. They stated that ChinaAMC’s performance positions it as the 6th most successful out of 82 ETFs launched in Hong Kong over the past three years and in the top 20% overall in terms of launches.

The underperformance of the Hong Kong Bitcoin ETF launch has rippled through the crypto market with a downward wave.

Crypto Market Hit as Bitcoin Retraces to $50K Mark

Leading the major market negative shift on April 30, Bitcoin (BTC) suffered a sharp fall below the $60,000 mark for the first time this week, dropping to the $56,000 point.

This marked a sharp 12.5% decline in the token’s price, worsening ITS week-long downward trend. Currently trading at $56,980, BTC is down 29.4% from its all-time high of $73,738, squashing the once-heightened optimism for an imminent bull run. 

Bitcoin was not the only asset hit. Ethereum (ETH) and Solana (SOL) also took major hits, falling 29.7% and 17%, respectively. Similarly, Binance Coin (BNB) and Avalanche (AVAX) experienced losses within the 6% range before rebounding later with modest gains.

Read more about how investors are approaching the market decline:
Retail Bitcoin Investors Buy the Dip, Whales Step Back  

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