Spot ETFs for Bitcoin and Ethereum: Potential Impact on Fund Flows, as Analyzed by Hong Kong Soochow Securities

IconCrypto News Terminal23 Apr, 2024

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Spot ETFs for Bitcoin and Ethereum: Potential Impact on Fund Flows, as Analyzed by Hong Kong Soochow Securities

Hong Kong-based brokerage Soochow Securities has analyzed the potential impact of spot ETFs for Bitcoin and Ethereum (ETH) on fund flows. The report suggests that the scale of inflows into these ETFs will be influenced by the inflow of "southbound capital" from mainland China. The report also highlights the potential for fund attraction from major East Asian countries such as Japan and Korea. Compared to futures ETFs, spot ETFs offer advantages in contract renewal, trading procedures, liquidity, and real-time tracking of underlying asset prices, which may lead to fund outflows from cryptocurrency futures ETFs. Previously on April 23, 2024, Hong Kong Soochow Securities predicted that the launch of spot ETFs for Bitcoin and Ethereum could potentially attract funds from major East Asian countries like Japan and Korea, and could impact fund flows for cryptocurrency futures ETFs.

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