Bloomberg: Don't expect huge traffic from Hong Kong ETFs! Will it force the SEC to speed up the passage of Ethereum spot ETF?

Hong Kong Harvest International, China Asset Management, Boshi International and HashKey Capital announced yesterday (15th) afternoon that the China Securities Regulatory Commission has approved in principle their Bitcoin and Ethereum spot ETFs at the same time. Product application.

Bitcoin and Ethereum rose after hearing the news, but were unable to continue

Benefiting from this good news, Bitcoin rose by 1.84% in the short term, reaching a maximum of $66,558, but then sold out As pressure emerged, the author has given up all the gains and is now trading at $63,140, ​​down 3.49% in the past 24 hours.

As Hong Kong preempted the United States in approving the world's first Ethereum spot ETF, ETH rose more than Bitcoin in the short term, reaching a maximum of $3,255. However, it also fluctuated downwards and is now at $3,070, with an increase of 1.98 in the past 24 hours. %.

Bloomberg Analyst: Don’t expect Hong Kong ETFs to have a lot of traffic

It is worth noting that Eric Balchunas, a senior Bloomberg ETF analyst, poured a lot of money for the optimists on the evening of the 15th. He said that even if Hong Kong’s Bitcoin spot ETF and Ethereum spot ETF were combined, the fund size might be at most US$500 million, which is far less than the US Bitcoin spot ETF:

Don’t expect them to have one A lot of traffic, I saw someone estimate it could be $25 billion, which is crazy. I think they will be lucky to reach US$500 million for the following reasons:

1. The Hong Kong ETF market is very small, only US$5 billion, and residents of mainland China should not be able to purchase this product, at least not officially. allowed on the Internet

2. The three approved issuers (Boshi, HuaXia, Harvest) are also very small, and currently no giants like BlackRock are involved

3. The underlying ecology The liquidity or efficiency is very low

4. The management fees will be very high, which is relatively weak compared with the management fees in the United States

Will the Hong Kong Ethereum Spot ETF push the U.S. SEC to also approve it?

Another follow-up effect worth observing is that after the United States approved the Bitcoin spot ETF, it has yet to release a positive signal in the application for the Ethereum spot ETF, making the market optimistic about the potential of the Ethereum spot ETF this year. Expectations for passing the test have dropped again and again.

The approval of Ethereum spot ETF by Hong Kong this time may put pressure on the U.S. SEC in disguise and increase the probability and efficiency of their approval. Kong Jianping, director of Hong Kong Cyberport, said last week that the Hong Kong Ethereum ETF will be ETH’s life-saving straw: Hong Kong took the lead in passing the Ethereum ETF before the United States. Hong Kong is really Ethereum’s life-saving straw.

In addition, Metalpha CEO Adrian Wang also said that the upcoming Ethereum spot ETF may have greater appeal than the Bitcoin spot ETF: I think the influence and importance of the Ethereum ETF It could outperform Bitcoin ETFs. Investors can gain exposure to Bitcoin through Bitcoin-related stocks, such as mining companies, but so far, there are no Ethereum-related stocks.

Angela Ang, a former regulatory official at the Monetary Authority of Singapore and senior policy advisor at blockchain intelligence company TRM Labs, also bluntly said that Hong Kong took the lead in the United States to approve the Ethereum spot ETF, which is an important step for Hong Kong to become a leading cryptocurrency center. Milestone: With fewer alternative options for exposure to Ethereum, we may see an Ethereum ETF attract more investor interest.

The future trends of the SEC are worthy of our continued observation.

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