Bitcoin ETFs: Bloomberg Analyst Outlines US Market Supremacy Over Hong Kong

Amid the buzzing excitement following the approval of Bitcoin and Ethereum Spot Exchange-Traded Funds (ETFs) in Hong Kong, Bloomberg Intelligence analyst Eric Balchunas has made a post highlighting the explosive growth of the products in the United States.

US Bitcoin ETFs Assets Surpasses Hong Kong’s

According to Eric Balchunas, the combined asset pool held by US Spot Bitcoin ETFs is more than that of the entire Hong Kong ETF market. Bachunas’s disclosure demonstrates the enormous rise in interest in Bitcoin-related financial products among US investors. 

Furthermore, it emphasizes how the public adoption of cryptocurrencies and their integration into established financial markets are growing. In the ever-evolving world of cryptocurrency, this revelation indicates a major shift in investors’ confidence and portfolio allocation techniques.

Balchunas’s report coincides with its colleague James Seyffart’s post, also underscoring the country’s dominance in the Bitcoin ETFs market. Seyyfart claimed that more assets are found in US-listed BTC ETFs than in any single Hong Kong-listed ETF.

The Bloomberg analyst noted that the US ETF market is pegged at $9 trillion in assets compared to Hong Kong’s entire ETF market, which is valued at $50 billion. Meanwhile, Mainland China boasts an ETF market valued at $325 billion, underscoring the stark disparity in size between the two markets.

The post read:

The US ETF Market is almost $9 Trillion in assets, that is a trillion with a ‘T’. The entire Hong Kong ETF market is $50 billion. Mainland China ETFs are $325 billion. We are talking about literal orders of magnitude differences in size and impact.

Seyffart made the claims in response to a pseudonymous X user’s post urging investors to short Ethereum using heavy leverage due to news regarding BTC and ETH ETFs being approved in HK by April 15. 

While the user believes the development could impact the market significantly, Seyffart thinks it is not major news. However, he believes the development might prove to be a significant deal in the long run. 

Clearing the air, Seyffart highlighted his perspective is not meant to downplay these ETFs’ potential or the notion that they might end up serving as the Asian center for exposure to digital assets on TradFi rails. However, their impact will probably not be as substantial as that of a launch in US markets.

Most BTC ETF Issuers Saw Zero Inflow

In the past few days, the US ETF market appears to have witnessed a notable decline in interest. On Monday, Farside revealed that over the last two days, BlackRock‘s BTC ETF has been the only fund to see inflows, while all other ETFs have seen zero or no inflows.

Data from Farside shows that Blackrock’s IBIT recorded $73.4 million in net inflows on Monday. Meanwhile, other companies recorded $0 in net inflow, and Grayscale saw about $110 million in net outflow.

Featured image from iStock, chart from Tradingview.com