Hong Kong's Bitcoin And Ethereum ETFs Poised to Reach $1B In Assets, Bloomberg Analyst Predicts

Zinger Key Points
  • Bloomberg analyst predicts Hong Kong's new Bitcoin and Ethereum ETFs to accumulate $1 billion in assets within two years.
  • Estimate is based on infrastructure improvement.

The newly-approved Bitcoin BTC/USD and Ethereum ETH/USD exchange-traded funds (ETFs) in Hong Kong are projected to accumulate $1 billion in assets within the next two years, according to Bloomberg analysts.

What Happened: Bloomberg Senior ETF analyst Eric Balchunas has revised his initial inflow predictions for these ETFs. Funds initially expected to draw around $500 million in inflows are now estimated to reach $1 billion within two years.

Despite China’s ban on the underlying assets related to these ETFs, analysts predict significant interest in the Hong Kong-listed crypto ETFs.

However, the estimate is based on how quickly improvement is seen in the infrastructure and ecosystem.

Balchunas had earlier expressed skepticism about the potential inflows due to concerns about Chinese investor eligibility and the maturity of the Hong Kong ETF market.

Among the firms set to launch spot ETFs, Bosera and Harvest collectively manage $50 million across nine ETFs. In contrast, ChinaAMC, with 15 ETFs and $3.6 billion AUM, is expected to make a significant impact upon launching its spot crypto ETFs.

Also Read: Hong Kong’s First Bitcoin, Ethereum Spot ETFs Get Regulatory Nod: ‘Welcome To The Party, China!’ Says Crypto Analyst

Why It Matters: Bitcoin ETFs in the Asia-Pacific region currently hold $250 million in AUM, spread across five ETFs, three of which are based in Hong Kong. The largest of these, the CSOP Bitcoin Futures ETF listed in Hong Kong, holds $121 million in AUM.

The approval of Bitcoin and Ethereum ETFs in Hong Kong is a significant development in the digital asset world. These ETFs, managed by prominent firms such as China Asset Management and HashKey, are unique for their inclusion of Ether and the use of in-kind redemptions.

The Hong Kong units of Bosera Asset Management and China Asset Management received regulatory approval from the Hong Kong Securities and Futures Commission (SFC) to roll out the ETFs.

What’s Next: These topics are expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Read Next: Why Hong Kong Bitcoin ETFs Matter, According To 10x Research

Image: Shutterstock

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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