Despite much anticipation, the debut of spot Bitcoin and Ethereum exchange-traded funds (ETFs) in Hong Kong fell short of the trading frenzy witnessed during the launch of similar products in the United States earlier.

Hong Kong's newly introduced Bitcoin and Ethereum ETFs struggled to match the staggering trading volumes seen in the United States following the inauguration of spot Bitcoin ETFs. While the total trading volume for the six new crypto ETFs in Hong Kong reached 87.58 million Hong Kong dollars ($12 million) on the first trading day, it paled in comparison to the eye-watering $4.6 billion recorded during the initial trading session of U.S. spot Bitcoin ETFs.

Data provided by the Hong Kong Stock Exchange (HKEX) underscored the subdued performance and investor interest in the six spot Bitcoin and Ether ETFs, which are managed by prominent firms including China Asset Management, Harvest Global, Bosera, and HashKey.

Among the newly launched ETFs, the Bosera HashKey Bitcoin ETF garnered a trading volume of 249,000 HK$ on its first day, while the Bosera HashKey Ether ETF recorded 99,000 HK$ in trading volume by the close of trading.

However, the China Asset Management (CAM) Bitcoin ETF demonstrated relatively stronger performance, generating 4.6 million HK$ in trading volume. Similarly, CAM's Ether ETF also saw considerable trading activity, amounting to 4.6 million HK$.

Earlier reports from Wu Blockchain had indicated significant investor interest in CAM's spot Bitcoin and Ethereum ETFs, with subscription sizes totaling $140 million during the initial offering period.

HKEX had previously experienced considerable success with its cryptocurrency futures ETFs, launched in late 2022. These "VA Futures ETFs" attracted $529 million in net inflows during the first quarter of 2024, further fueling enthusiasm surrounding the launch of spot BTC and ETH ETFs on April 30.

In a bid to attract investors, local fund managers and brokerages in Hong Kong have announced fee exemptions for the new crypto ETFs. Harvest is waiving its management fee for six months, while Bosera has forgone its management fee for four months.

While there is speculation that investors from mainland China could potentially access the newly launched products, stringent Know Your Customer (KYC) policies may present hurdles, particularly concerning mainland Chinese identity cards.