Spot Bitcoin ETFs See Surge in Trading Volume

Spot bitcoin exchange-traded funds (ETFs) in Hong Kong recorded nearly $14.3 million in daily trading volume on Monday, the highest since August 5 amid a broader crypto market rally.

The three ETFs typically experience low trading volume, but last week they saw over HK$120 million ($15.4 million), an increase from HK$80.2 million the previous week, according to local crypto exchange OSL and data from the Hong Kong Stock Exchange.

On Monday, the ETFs had inflows of 37.77 BTC ($3.3 million), marking the largest daily inflows since August 22. Interestingly, the China AMC bitcoin ETF was the only one to record positive flows, with 47.75 BTC inflows, while the Bosera HashKey BTC ETF experienced outflows of 9.97 BTC, and Harvest's ETF recorded zero flows.

The uptick in trading volume coincides with bitcoin reaching new highs, fueled by growing pro-crypto sentiment following U.S. President-elect Donald Trump’s recent victory.

Alex Tseng, head of sales trading at OSL, noted a significant increase in inflows for Hong Kong’s spot ETH and BTC ETF subscriptions, particularly since the previous Friday. He explained that this surge reflects heightened market sentiment as traders look to capitalize on favorable conditions arising from political developments and the broader adoption of cryptocurrency.

Jeffrey Ding, chief analyst of HashKey Group, commented on Trump’s campaign promises of including bitcoin in government reserves and forming a presidential advisory council. He believes these policies will foster a favorable market environment for bitcoin's growth.

In the U.S., spot bitcoin ETFs also experienced a strong performance, with daily net inflows of $1.1 billion on Monday, marking the second instance of over $1 billion collectively drawn in, following $1.38 billion on November 7.