The six Bitcoin and Ether ETFs that debuted on the Hong Kong market on Tuesday had a trading volume of just $11 million.
The crypto market continues to bleed despite the debut of the Spot Bitcoin and Ethereum ETF in Hong Kong on Tuesday.
Bitcoin (BTC), the world's largest cryptocurrency, is trading below $61,000, while Ethereum (ETH) is down 7%, trading around $3,000. The global cryptocurrency market capitalization, as measured by CoinGecko, fell by 4% to $2.35 trillion.
More than $300 million in leveraged positions were liquidated on Tuesday morning, according to CoinGlass data.
Six ETFs that began trading in Hong Kong on Tuesday performed significantly worse than expected. Total trading volume was just $11 million, well below the $100 million estimate. Bitcoin ETFs accounted for $8.5 million of the total, while Ether ETFs contributed the rest, according to data from the Hong Kong Stock Exchange (HKEX).
Analyst suggest The launch didn't quite live up to their hype.
Since January 11, nearly a dozen spot BTC ETFs have traded in the U.S., attracting nearly $12 billion in investor capital. The cumulative trading volume of the US Spot BTC ETF on the first day was $655 million.
Spot ETFs provide investors with exposure to the underlying asset (in this case, Bitcoin) without the need to directly own and store their coins.
This week will be packed with economic news as Fed policymakers gather for a two-day meeting.
Michael Van de Poppe, CEO and Founder of MN Trading, tweeted At X on the start of a big macroeconomic week.
“We expect further declines for Bitcoin, but after that I think we will find a bottom within a week. We will take liquidity below $61,000 and rotate again from there,” he said.
Stock prices bleed ahead of Fed meeting
Stocks were in the red on Tuesday as better-than-expected wage data heightened inflation concerns ahead of the Fed meeting.
The S&P 500 Index fell 0.17%, the Nasdaq Composite Index fell 0.27% and the Dow Jones Industrial Average fell 159 points, or 0.38%.
Crypto stocks like MicroStrategy (MSTR) fell 10%, while Coinbase (COIN) stock fell 3%.
Bitcoin mining stocks such as Marathon Digital (MARA), Riot Platforms (RIOT), and BitFarms (BITF) posted losses of 4% to 7% on Tuesday.
