Hong Kong Cryptocurrency ETF Launches Full Moon: How Did It Perform? What market signals are reflected? – block hacker

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Hong Kong Cryptocurrency ETF Launches Full Moon: How Did It Perform? What market signals are reflected? – block hacker
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On December 16 last year, two encrypted asset exchange-traded funds (ETFs) were approved to be listed and traded on the Hong Kong Stock Exchange, marking an important step for the Hong Kong government to become an Asian cryptocurrency center. In the blink of an eye, a month has passed, how is the performance of the Hong Kong cryptocurrency ETF?

The two ETFs launched last year, both launched by CSOP Asset Management Co., Ltd., mainly track the futures prices of Bitcoin and Ethereum on the Chicago Mercantile Exchange (CME), so they are called futures ETFs, and the codes are 3066 and 3068 respectively. On January 13, Samsung Asset Management also launched an ETF on the Hong Kong Stock Exchange that also tracks CME Bitcoin futures, code: 03135. Therefore, there are currently three cryptocurrency futures ETFs in Hong Kong.

Odaily Planet Daily observed that the two ETFs of CSOP had a relatively high premium (the transaction price was higher than the net asset value) on the day of listing, which were 6.01% (Ethereum ETF) and 4.02% (Bitcoin ETF); Subsequently, due to the influence of the cryptocurrency market, the price fell for a short time, and basically remained at the same level as the net asset value.

Phemex

After this year, the cryptocurrency market rebounded. Bitcoin and Ethereum spot prices rose by 27.6% and 30.2% respectively, and the market prices of the two futures ETFs also rose accordingly, respectively 29.2% and 32.9%, both of which exceeded spot performance. (Note: The market is bullish, and the futures price is higher than the spot price, which is called contango.)

The trading volume of the two ETFs has also increased, but neither has exceeded the previous value of last year: the previous value of the daily trading volume of Bitcoin futures ETF is 2.1 million (December 30), and the highest daily trading volume in 2023 is 1.822 million; Ethereum futures The previous value of ETF daily trading volume was 1.661 million (December 20), and the daily trading volume in 2023 will reach a maximum of 990,000.

More importantly, in the rising market, the two ETFs actually experienced discounts. The Bitcoin futures ETF had a maximum discount of 4.96%, and the Ethereum futures ETF had a maximum discount of 2.44%. This means that early investors may be speeding up selling and exiting. The specific discount and premium trends are as follows: (the red area is the discount, and the green area is the premium)

Ethereum

(Bitcoin ETF)

Ethereum

(Ethereum ETF)

Compared with other cryptocurrency ETFs, it can be found that this trend has no commonality: the net value discount rate of Grayscale Bitcoin Trust (GBTC) dropped from 45.1% at the beginning of the year to 38.8%; the net value discount rate of Ethereum Trust (ETHE) dropped from 59.3% at the beginning of the year. % dropped to 51%; while Canada’s two cryptocurrency ETFs (BTCC, BTCQ) both had a premium, especially BTCQ’s positive premium once rose by more than 10%.

In addition, Hong Kong’s ETFs are not very competitive in the international market. It has been a month since they were issued, but their asset size has not increased on a large scale. On the one hand, it is limited by the overall poor performance of the encryption market, but on the other hand, it is also related to its own mechanism design.

Management fees are an important factor that directly affects investors’ choices. CSOP’s two ETF management fees are both 2%, which is consistent with Grayscale, while the Canadian cryptocurrency ETF product fees are lower than the two, with a management fee of only 1%. In addition, in terms of popularity, Grayscale is a world-renowned cryptocurrency trust fund with rich experience, and 3iQ and CoinShares have also established their own brands in the cryptocurrency field, so cryptocurrency investors are more familiar with these institutions. In contrast, it is difficult for CSOP to gain the attention and favor of global investors.

Ethereum

(A list of other Canadian cryptocurrency ETFs)

However, the newly launched Samsung ETF seems to have learned a lesson and took the initiative to reduce the management fee to 0.95%; and Samsung’s global brand influence is also greater. From this point of view, the Samsung Bitcoin ETF may come from behind, and its asset management scale will surpass that of CSOP. Samsung also stated that if conditions permit, it will consider launching an ETF based on spot bitcoin in Hong Kong in the future.

(The above content is excerpted and reproduced with the authorization of our partner MarsBit, link to the original text | Source: Odaily Planet Daily)

Disclaimer: The article only represents the author’s personal views and opinions, and does not represent the objective views and positions of the block. All content and opinions are for reference only and do not constitute investment advice. Investors should make their own decisions and transactions, and the author and blockers will not bear any responsibility for the direct and indirect losses caused by investor transactions.

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