According to Eric Balchunas, an ETF analyst at Bloomberg, crypto investors should temper their expectations in light of the recent approval of many spot Bitcoin and Ether ETFs in Hong Kong. Senior Bloomberg exchange-traded funds analyst Eric Balchunas suggests that three recently licensed spot exchange-traded funds in Hong Kong that are associated with Bitcoin (BTC) tickers down $62,567 and Ether (ETH) tickers down $3,036 might not be as significant as some may believe.
Three Chinese offshore asset managers received provisional clearance from the Hong Kong Securities and Futures Commission (SFC) on April 15 to start offering spot Ethereum and Bitcoin exchange-traded funds (ETFs). China Asset Management, Bosera Asset Management, and Harvest Fund Management are among the asset managers whose approval has been granted.
Wild Speculation That ETF May Bring In $25 Billion Dispelled By Balchunas
But in a piece published on April 15 on X, Balchunas dispelled wild speculation that the ETFs may bring in $25 billion in a day and outlined four key reasons why cryptocurrency investors shouldn’t have high hopes for the freshly approved securities.
“It’s unrealistic to expect a lot of flows; I saw one estimate of $25 billion.” We believe their $500 million will be a blessing. Balchunas provided evidence for his forecasts by stating that the Hong Kong market is “tiny” in comparison to nations like the US and that these exchange-traded funds deny formal access to the products to Chinese individual investors.
