Surge in Hong Kong Bitcoin ETFs: How Trump's Election Boosted Trading Volumes

Bitcoin ETFs in Hong Kong Experience Trading Surge

Surging bitcoin prices following the election of Donald Trump as the next US president have finally given Hong Kong’s spot cryptocurrency exchange-traded funds (ETFs) a significant boost this week. Trading volume surged to a three-month high, with about HK$135 million (US$17.3 million) changing hands on Tuesday.

On most days since the ETFs launched in April, their total daily trading volume lingered below US$4 million. However, the recent increase indicates a growing interest in these financial instruments.

Competition with US Crypto Market

The Asian financial centre’s ambition to establish itself as a virtual asset hub is now facing increased competition. Trump’s return to the White House has reignited his pledge to make the US the “crypto capital” of the world.

“Historically, the crypto ETFs in Hong Kong were less in the spotlight as most larger institutional investors can simply buy the ones in the US, which are larger and more liquid,” said Jeff Mei, chief operating officer of cryptocurrency exchange BTSE.

Local Demand Rising

The recent surge in interest in Hong Kong indicates a growing demand from local retail investors, wealth managers, and smaller institutional investors who prefer to have their investments denominated in Hong Kong dollars.

Bitcoin Price Boom

Bitcoin, the world’s largest cryptocurrency, jumped more than 10 percent this week, reaching an all-time high above US$93,000. The token has gained 35 percent over the past month as US election polls swung in Trump’s favor, nearly doubling in price so far this year.

Former president Donald Trump at the Bitcoin 2024 Conference, courting the crypto community.