Home Editor Picks Hong Kong Ether ETFs Hit Highest Daily Inflow as US Anticipate SEC Approval

Hong Kong Ether ETFs Hit Highest Daily Inflow as US Anticipate SEC Approval

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Hong Kong Ether ETFs Hit Highest Daily Inflow as US Anticipate SEC Approval


Hong Kong Ether ETFs have seen their highest daily inflow since launch. This week’s rise in trade volumes caused the price of crypto products to surge by over 18%.

The sudden increase in the HK Ethereum ETFs comes amid heightened anticipation of the US SEC approval of a similar product in the United States. Notably, the US SEC will decide its stance on the first Ether ETF application on its desk this week.

Hong Kong Spot ETFs Record Highest Daily Inflows

Hong Kong’s spot Ethereum exchange-traded funds (ETFs) have recorded their peak daily inflow since launch. 

As of midday Wednesday, May 22, ChinaAMC’s Ether ETF recorded an inflow of over HK$5 million (approximately $640,780), marking the highest daily inflow for the ETF since its emergence.

Further, the three Hong Kong Ether ETFs witnessed a net inflow of HK$3.77 million, reflecting growing investors’ interest. Hong Kong Bitcoin ETFs have not been left out of the recent impressive performance. As of Monday, May 20, the BTC ETFs saw a positive net inflow of $6.62 million. 

Following their latest increase, the Bitcoin ETFs currently hold a total of 3,660 BTC tokens after trading for 13 days. Additionally, the ETFs’ cumulative assets amount to almost $246 million, with a total trade value of $2.78 million. 

Bosera & HashKey spot Bitcoin ETF leads the inflows with $6.29 million, equivalent to 95 BTC. China AMC’s ETF follows with $7,090 (0.11 BTC) and Harvest’s ETF with $321,000 (4.85 BTC).

The spikes in ETF inflows account for the rising institutional interest in the Hong Kong crypto markets. However, it’s worth noting that Hong Kong spot ETFs have indicated low turnover on most days since their inception. 

In comparison, the US spot Bitcoin ETFs, approved in January this year, have larger trade volumes. Hong Kong’s similar products only have modest volumes.

ETFs remain vital to attracting mainstream investors into the dynamic crypto landscape. Amid the volatility of digital assets, they drive demand in the underlying crypto asset, potentially boosting prices. 

However, due to their lackluster performance, Hong Kong ETFs have not significantly impacted the broader crypto market. Some crypto professionals rate Hong Kong’s ETF market very low compared to the US ETF market.

Potential US SEC’s Approval For ETH ETFs

Tensions are high as the crypto community awaits the US SEC’s decisions on some Ether ETF applications this week. According to its schedule, the agency will either approve or reject one of the spot Ether ETFs on May 23.

Further, Bloomberg Senior ETF analysts Eric Balchunas and James Seyffart speculated on the potential outcome on Tuesday. Per the duo, the possibility of the SEC approving the ETFs increased to 75% from the previous 25%.

The analysts also noted that the US securities regulator could reverse course and reject the applications. Such a turnaround would indicate the agency’s increasing hostility towards the crypto product.

Ethereum trades at $3,711, showing a 1.74% decrease over the past 24 hours. Meanwhile, BTC’s rally has slightly stalled, with its price hovering around $69,883, following a drop of 1.71% over the past day.

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