The recent launch of spot Bitcoin and Ethereum exchange-traded funds (ETFs) in Hong Kong has been met with a remarkable trading volume, according to Bloomberg ETF analyst Eric Balchunas.

Surging Interest in Hong Kong's Crypto Market

Balchunas, a senior ETF analyst at Bloomberg, has highlighted the impressive trading volume of Hong Kong's Bitcoin and Ethereum ETFs, which reached over $12 million on their debut day. This figure is seen as a significant achievement, especially considering the size of the Hong Kong market. Balchunas noted that this trading volume is equivalent to a staggering $1.6 billion in the US market, underscoring the surging interest in Hong Kong's crypto landscape.

Substantial Assets Under Management

Despite the criticism surrounding the supposed "poor performance" of these ETFs, Balchunas dismissed such claims and praised the impressive performance. He revealed that the assets under management (AUM) for these ETFs are even more substantial, with China AMC, one of the issuers, reporting a staggering $141 million in AUM. This figure, when adjusted for market size, is equivalent to a remarkable $22 billion in the US market.

Comparing East and West Markets

Balchunas drew a comparison between the performance of the Hong Kong and US crypto ETF markets. While the US saw $740 million in AUM and $4.6 billion in trading on day one, Hong Kong's figures, when adjusted for market size, paint a different picture. Adjusted for market scale, Hong Kong's trading volume and AUM are equivalent to over $25 billion and $1.6 billion, respectively.

Optimism for Hong Kong's ETF Market

Balchunas expressed optimism about the timing of the ETF launch in Hong Kong, suggesting that the influx of over $141 million in Hong Kong inflows would also offset some of the negative flows in the US market. Despite the size of the Hong Kong market relative to the US, Balchunas believes that the impressive performance of these ETFs is a testament to the growing interest and potential of the region's crypto market.