Bitcoin price falls after disappointing ETF launch in Hong Kong

Hong Kong’s newly launched exchange-traded funds (ETFs), which are linked to Bitcoin and Ether, have failed to live up to market expectations.

A disappointing first day

The ETFs launched today achieved a combined trading volume of just $11 million, significantly less than the $100 million analysts had forecast. Of this amount, $8.5 million came from Bitcoin-related ETFs, while the remaining funds were contributed by ETFs related to Ether.

This performance contrasts sharply with that of the US spot BTC ETFs, which managed an impressive $655 million on their first day of trading. Since launching on January 11, these ETFs have attracted nearly $12 billion in investments.

However, inflows into America have also declined recently, contributing to the crypto market’s lackluster performance in recent weeks.

Questions surrounding the acceptance of ETFs in Asia

Spot ETFs allow investors to gain exposure to cryptocurrencies without actually owning them. They are often considered a better investment option than futures-based ETFs due to the additional costs that futures impose, such as rollover fees.

However, the disappointing performance of the recently launched ETFs in Hong Kong raises questions about the acceptance and future success of these financial instruments in Asian markets.

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