The highly anticipated launch of Hong Kong's spot Bitcoin and Ether ETFs has been met with a lukewarm response, attracting only $292 million on its debut day, with Ether accounting for about 15% of the total. While some analysts have expressed disappointment, others have pointed out that this is still a significant achievement, ranking among the top 20% of ETF launches in Hong Kong.

Six Hong Kong spot Bitcoin and Ether ETFs from three issuers debuted on the market, but failed to meet the high expectations set by the billions of dollars solicited by United States spot Bitcoin ETFs within one week of their debut in January. Bloomberg senior ETF analyst Eric Balchunas commented, "We tried to warn everyone to lower expectations re HK." However, he also noted that the launch was still a significant success, with the ChinaAMC Bitcoin ETF taking in $123 million on its first day, ranking it 6th of 82 ETFs launched in the past three years in Hong Kong and in the top 20% overall.

Despite the initial disappointment, market participants remain optimistic about the future of the ETFs. According to a recent survey by Hong Kong crypto exchange OSL, 77% of crypto investors in the East Asian city plan to invest in the local spot Bitcoin and Ether ETFs. OSL's executive director and head of regulatory affairs, Gary Tiu, wrote, "This positive investor sentiment powerfully points to the growing acceptance and importance of digital assets in the region's economy, and Hong Kong is once again marking its place as the digital asset hub."

In other news, a suspect has been arrested in China for impersonating a Starknet developer and fraudulently claiming 40,000 STRK tokens, worth $120,000. The suspect, known only as "Lan," allegedly searched for relevant workload certificates submitted by others, impersonated other people's identities, and submitted over 40 forms to falsely claim the funds. Chinese police reported that the victim's 40,000 STRK coins were transferred to Lan's OKX wallet and then converted into 91,000 USDT coins, equivalent to over 637,000 yuan.

Additionally, Binance has shut down its Hong Kong-affiliated entity, HKVAEX, citing a request to change the audit company or provide more information. Users who do not withdraw assets after the closure will be debited a custodian fee of USDT 20 or the equivalent in other virtual assets, with weekly snapshots starting from May 1.

Furthermore, Changpeng Zhao, the former CEO of Binance, has been sentenced to four months in prison after pleading guilty to one charge of money laundering. Zhao, a Chinese-born Canadian national, founded Binance in 2017 and quickly became the largest crypto exchange by trading volume, with a market share of over 50%. However, the exchange's rapid growth came at the cost of failing to maintain an adequate compliance program. Last November, the exchange announced a $4.3 billion settlement with the U.S. Department of Justice over money laundering charges. Zhao also stepped down as CEO as part of a plea deal.