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Bloomberg ETF analysts: Hong Kong's Bitcoin and Ethereum Spot ETF inflows may be $500 million
Bloomberg ETF analyst Eric Balchunas posted on Platform X that the Hong Kong Spot Bitcoin ETF has been approved in principle but has not yet been launched. Hong Kong Spot Bitcoin ETF is not expected to see very long flows (some estimate $25 billion, which is crazy), and the estimated size of the inflows into Bitcoin and Ethereum Spot ETF could be $500 million for the following reasons:
1. The Hong Kong ETF market is small, only $50 billion.
2. The three approved Spot Bitcoin ETF issuance parties (Bosera, Huaxia and Harvest) are small in scale. There are no big institutions like BlackRock that are currently involved.
3. Lower Liquidity/Efficiency of the Underlying Ecosystem = These ETFs may experience large spreads and Prem discounts.
4. The Money Laundering may be 1-2%, which is higher than the Spot Bitcoin ETF in the United States.