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Spot Bitcoin ETFs (exchange-traded funds) to be launched in Hong Kong will “be lucky” to raise $500 million in the city’s “tiny” ETF market, said Bloomberg ETF analyst Eric Balchunas.
Balchunas shot down predictions that the approvals of spot Bitcoin ETFs would lead to a $25 billion injection into the crypto space, calling them “insane” in an Apr. 15 post on X.
He said the BTC ETFs are likely to be launched next week.
Market For Bitcoin ETFs In Hong Kong “Tiny” Compared To US
Balchunas says the Hong Kong ETF market is “tiny” compared to the US, and that Chinese investors won’t, at least legally, have access to them.
The ETF issuers that received approval in Hong Kong are also dwarfed by “big fish” asset managers such as BlackRock, which currently has over $9 trillion in assets under management, said Balchunas.
“US spot Bitcoin ETFs have more assets than the entire HK ETF market,” the analyst said in a follow-up post on X.
Stat of the Day: US spot bitcoin ETFs have more assets than the entire HK ETF market. https://t.co/sQ1VMUhKFI
— Eric Balchunas (@EricBalchunas) April 15, 2024
US spot Bitcoin ETFs also charge “dirt cheap fees” that are much lower than the approximate 1-2% fees that the Hong Kong-based funds are expected to implement, Balchunas added.
“Other countries adding btc ETFs is no doubt additive but it’s nickel-dime compared to the mighty US market,” he said.
BlackRock’s IBIT Continues To Lead The US Market
BlackRock maintained its dominance in the US ETF market after its spot Bitcoin ETF (IBIT) was the only fund to record inflows over the past 2 days.
IBIT posted net inflows of $73.4 million on Apr. 15, whereas the Grayscale Bitcoin Trust (GBTC) recorded outflows of $110.1 million.
The 10 US spot Bitcoin ETFs suffered net outflows on Apr. 14 and Apr. 15 of $55.1 million and $36.7 million, respectively.
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