Bloomberg analysts: Hong Kong virtual asset spot ETF is expected to attract up to US$500 million in funds

PANews reported on April 15 that Eric Balchunas, a senior ETF analyst at Bloomberg, said on the Don't expect huge inflows (I've seen one estimate of $25 billion, which is crazy). We think they'll be very lucky if they can attract $500 million. Here's why: 1. The Hong Kong ETF market is very small, only 50 billion US dollars, and mainland Chinese residents cannot purchase these ETFs at least from official channels. 2. The size of the three approved issuers (Bose Fund, China Asset Management, China Universal Fund). All are small. No big institutions like BlackRock are participating yet. 3. The underlying ecosystem in Hong Kong is illiquid and less efficient, so these ETFs may see larger spreads and premium discounts. 4. These. ETF fees can be anywhere from 1-2%, which is a far cry from the extremely low fees in the United States.”

However, Balchunas said: “To be clear, all this is obviously positive for Bitcoin because it opens up more investment channels. But in the long term, some of this may disappear: increased liquidity, narrowing spreads , lower fees, and greater issuer participation. But in the short and medium term, our expectations are more modest.” Additionally, Balchunas added: “Yes, the Ethereum ETF was also approved. It’s the sum of all these ETFs combined.”