Inflow of money to Ethereum ETFs in Hong Kong stops. What happened?
Key facts:
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The market seems expectant of what will happen to ether ETFs in the United States.
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If US ETFs are approved, it could be a blow to the industry in Hong Kong.
Inflows into spot ETFs of ether (ETH), Ethereum’s native cryptocurrency, listed on the Hong Kong stock exchange stopped yesterday, Monday, May 20.
Although the capital inflow was positive between the end of April and the beginning of May, as the days progressed, Investors withdrew capital or stopped investing in ether ETFs.
As seen in the following image, yesterday the funds recorded no movements, according to SosoValue data.
Since the funds were issued last April, they have accumulated $41 million in total net assets.
The weak performance of ether ETFs in that special administrative region of China is possibly due to The market is waiting to see what will happen to ether funds in the United States.
Let us remember that next Thursday, May 23, the deadline granted by the United States Securities and Exchange Commission (SEC) to reject or approve the fund proposed by the VanEck company expires.
Until yesterday morning, the outlook looked gray for ether spot ETFs in the United States. Many claimed that the SEC would ultimately reject the proposals, at least on this occasion.
However, hours later it was announced that the US regulator could give the green light to financial instruments.
Eric Balchunas, ETF specialist, announced that there would be a high chance of approval for ether ETFs in the United States. His prognosis went from 25% to 75% chance of them being accepted.
What Balchunas reported is reinforced by Standard Chartered bank, which also expects the SEC to approve ether spot ETFs this week, the press noted.
ETFs in Hong Kong were able to influence the US
As CriptoNoticias reported, the approval of bitcoin and ether ETFs in Hong Kong not only strengthens the position of these cryptoassets in the Asian market, but also establishes a significant precedent that can influence regulatory decisions in other jurisdictions, especially in United States.
The idea that the approval of Ethereum ETFs in Hong Kong cannot be ruled out would be acting as a catalyst for the US response. Not only because of the pressure not to be left behind in terms of financial and technological innovation, but also to maintain its global financial supremacy.
If US ETFs are finally approved, could be a blow to the industry in Hong Kongsince they would take away the market and, as shown at the beginning with the brake on the inflow of money to the ETFs, there are indications that this is happening.
