HomeNewsLow Participation in Hong Kong's Ethereum ETF: What's Going On?

Low Participation in Hong Kong’s Ethereum ETF: What’s Going On?

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  • Only 62.8 ETHs have been subscribed to, and $390,300 has been transacted in a single day for the Ethereum ETF in Hong Kong.
  • The US House approves FIT21, classifying cryptocurrency tokens as commodities or securities; it is sent to the Senate for more elaboration.

Ethereum is becoming more and more popular, although participation in the Hong Kong Ethereum spot ETF was surprisingly limited.

On May 22, SosoValue data showed the ETF’s single-day net subscription was merely 62.8 ETH, and that the entire single-day transaction volume was just $390,300. This shows the Ethereum ETF market in Hong Kong is not very interesting to investors, according to a tweet from popular crypto journalist Collin Wu.

Viewpoint of a Bloomberg Analyst on Crypto ETF 

James Seyffart, a Bloomberg analyst, discussed the prospects for cryptocurrency ETFs in the future. Seyffart predicted that the SOL spot ETF will be approved in a few years after the CFTC approves the futures ETF, with the Financial Innovation and Technology for the 21st Century Act (FIT21) maybe speeding up the process.

He did point out, though, that Solana’s SEC security designation could make the ETF clearance process more difficult. Seyffart also said that Dogecoin (DOGE) and Litecoin (LTC) ETFs don’t seem to be in high demand.

FIT21 Is Passed by the US House of Representatives

Beside that, the U.S. House of Representatives passed the Financial Innovation and Technology for the 21st Century Act (FIT21) by a vote of 279 to 136. The law is attempting to provide clearer definitions of what a cryptocurrency token is as a security or a commodity.

After 71 Democrats broke party lines to endorse the measure, it will now go to the Senate for more polishing before maybe winning over President Biden.

Price Trends of Ethereum 

Meanwhile, the price of Ether (ETH) as of writing was at $3,786.32, slightly up 0.73% from the previous day, according to CoinMarketCap data. Ethereum has been trending upward for the last week, up 25.32%. The good performance suggests that the market is quite confident in the worth of Ethereum.

On the other hand, co-founder of Ethereum and CEO of Consensys Joe Lubin made statements that were highlighted in a previous ETHNews article.

According to Lubin, the approval of Ethereum ETFs might cause a serious supply problem, which would be a positive indication for the ETH coin. Expecting such an acceptance has added to Ethereum’s generally positive market outlook.

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Syofri is an active forex and crypto trader who has been diligently writing the latest news related to the digital asset sector for the past six years. He enjoys maintaining a balance between investing, playing music, and observing how the world evolves. Business Email: info@ethnews.com Phone: +49 160 92211628