FalconX Research Director: Hong Kong Cryptocurrency ETF AUM is still expected to reach US$1 billion by the end of the year

Odaily News David Lawant, head of research at institutional digital asset broker FalconX, has not given up on his predictions for the future development of cryptocurrency ETFs in Hong Kong, China. He said it is common for ETFs to see slow inflows after launch and then grow steadily over time, especially during periods of low market volatility, which has been highlighted in recent months. At present, the asset management scale of Hong Kong Bitcoin and Ethereum spot ETFs is US$290.6 million, far less than similar ETFs in the United States (nearly US$57 billion). On some trading days, these six funds did not even have net inflows. However, Lawant believes that the forecast that Hong Kong ETFs will reach US$1 billion in assets by the end of this year is still possible. "It may be more realistic (to reach this goal) by the end of 2025. However, given the fast-paced nature of cryptocurrencies, I would not completely rule out the above possibility," Lawant added. He also said: "Compared to what we have seen in other countries, this number will certainly appear small. But given the size of the Asian market and its importance to the entire crypto ecosystem, I believe it has the potential to go higher." (DL News)