Fresh BTC Inflows – Hong Kong ETF Set For Launch

Bitcoin's performance remained subdued as the market anticipated the launch of Hong Kong's inaugural spot crypto ETFs. Over the weekend, cryptocurrencies relinquished their gains, with the broad-market CoinDesk Market Index retreating by 3% in the past 24 hours.

Tuesday morning will mark the commencement of trading for the first series of Hong Kong-listed spot bitcoin and ether ETFs. According to ChinaAMC’s head of digital asset management, these new products are expected to enhance liquidity and foster broader market participation, potentially uplifting crypto prices.

The crypto landscape was quieter overall, with bitcoin lingering near AU$95,887 (US$63,000) after a dip to AU$93,749 (US$61,800). Currently, bitcoin trades slightly below the weekend's high of AU$97,324 (US$64,000), maintaining a steadier course compared to the broader market’s 3% decline.

Major altcoins also retreated from their weekend highs, with Ethereum (ETH) and Solana (SOL) experiencing declines of 4%-6%. The crypto market has been oscillating without a clear direction, a stark contrast to last month’s surge in BTC prices and the fervour around altcoins and meme coins.

Despite the historical frenzy observed with the U.S. debut of spot bitcoin ETFs, which significantly contributed to BTC's ascent over AU$110,724 (US$73,000) in March, the anticipation for Hong Kong's ETF launch has been comparably muted. However, Zhu Haokang from ChinaAMC suggested that the initial offering in Hong Kong might exceed the U.S. debut's AU$191 million (US$125 million) in seed funding.

Wayne Huang from OSL, overseeing ETF and custody, echoed Haokang’s sentiment following successful fundraising for two of the new ETFs, indicating that the transaction volume significantly surpassed that of the U.S. spot bitcoin ETF on its first trading day.

Haokang remains optimistic about the positive impact of the ETFs on cryptocurrency markets, asserting that the introduction of these funds will inject more liquidity, expand funding avenues, and increase overall market participation.

Willy Woo weighed in on X, highlighting the tidal way of inflows potentially coming…

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