Crypto ETFs are soaring in the US, with heavyweights already plotting the next wave — XRP ETFs might be coming “very soon,” Ripple’s Monica Long teased.
But in Asia? The market feels stuck in neutral despite growing retail interest and soaring US adoption.
Hong Kong, UAE, and Singapore are seeing growth driven by grassroots adoption, everyday crypto payments, and DeFi use, according to Chainalysis’ 2024 Global Crypto Adoption Index. But in terms of digital assets tied to ETFs? Not so much.
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Standing still
Hong Kong made a splash with Asia’s first spot Bitcoin and Ether ETFs, but volumes are whisper quiet.
Despite early hype of $100 million in expected trades, data shows only $3 million moved across Bitcoin ETFs on Tuesday, and Ether ETFs saw just $2 million — light years behind US volumes of $5 billion and $818 million, respectively.
Meanwhile, Singapore and the UAE, both seen as crypto-forward hubs, haven’t greenlit local ETFs.
Singapore’s Monetary Authority has ruled out spot Bitcoin ETFs for now, citing volatility. Retail investors in Singapore can still access foreign-listed ETFs via licensed intermediaries under strict risk disclosures, though.
In the UAE, retail investors can only touch crypto futures through approved exchanges.
MONIIFY reached out to VARA, Dubai’s crypto regulator, and also Singapore’s MAS, to check if any crypto ETF plans were on the table, but no response was received at the time of publishing.
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A different field
In Asia, a survey of more than 80 family offices and HNIs found that more than half of those investors were riding the crypto wave through ETFs — showcasing their potential once retailers have easier access and regulatory blessings.
But some argue Asia doesn’t have the same urgency for crypto ETFs.
Direct trading on exchanges in Hong Kong, Singapore, and the UAE means fewer investors are relying on ETFs as a gateway, Oscar Franklin Tan, CFO of Web3 firm Atlas Development, tells MONIIFY.
Compare that to the US, where TradFi (traditional finance) solutions like ETFs are often the go-to for crypto exposure. Asia’s more open access makes ETFs a nice-to-have, not a must-have.
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So… yeah… lukewarm numbers in Hong Kong and a lack of local options in Singapore and the UAE suggest the ETF boom is far from here.
But with Bitcoin hitting six figures and regulators worldwide warming up to crypto, is Asia ready to ride the ETF wave — or just happy paddling along? Time will tell if this is a slow start or simply a different game altogether.
Edited by Ankush Chibber. If you have any tips, ideas or feedback, please get in touch: talk-to-us@moniify.com
