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Quick take
The much-anticipated Hong Kong exchange-traded funds (ETFs) tracking Bitcoin and Ethereum have had their first day of trading, and while the volume numbers may have seemed disappointing at first glance, Bloomberg's lead ETF analyst, Eric Balchunas, explained that the debut was actually quite strong.
The ETFs traded a total of 87.58 million Hong Kong dollars (about $11.19 million) on their opening day. Although it did not meet the overly optimistic expectations, surpassing $100 million.
Balchunas noted that once localized, the ChinaAMC Bitcoin ETF raised $123 million on its first day, ranking it in the top 20% of all ETF launches in Hong Kong over the past three years.
“The ChinaAMC Bitcoin ETF raised $123 million on its first day, already ranking it 6th out of 82 ETFs launched in the last 3 years in Hong Kong and in the top 20% overall.”
Balchunas believes that a confusing aspect during launch is the disparity between assets and first day volume. He said Hong Kong ETFs already had assets before trading began on April 30, as they allowed planned investors to buy shares before trading began.
Meanwhile, U.S.-based ETFs had planned for investors to buy the shares on the first day of trading to increase volume. Balchunas said:
“At the end of the day, it’s the same, one method just gives you better optical value for money.”
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