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summary
Three Hong Kong-based issuers have received approval to launch physical exchange traded funds (ETFs) trading Bitcoin and Ethereum, marking a significant development in the region's crypto investment landscape.
introduction
In contrast to the cash creation redemption approach, these ETFs allow issuers to utilize non-cash assets to create new ETF shares, subject to conditional approval by the Hong Kong Securities and Futures Commission (SFC). becomes possible.
Main points
At least three Chinese offshore asset managers, including Harvest Fund Management, Vocera Asset Management and China Asset Management, plan to bring Bitcoin and Ethereum spot ETFs to Hong Kong. Bosera will collaborate with HashKey Capital, with OSL Digital Securities acting as sub-custodian for ChinaAMC and Harvest.
The physical issuance model for these ETFs allows for the issuance of new ETF shares using Bitcoin and Ethereum, allowing a departure from the approach of creating redemptions in cash. This model provides flexibility for an issuer to utilize a variety of assets in the creation of his ETF shares, unlike the cash-only restriction in the US market.
Following the approval of the SFC, the Hong Kong Stock Exchange (HKEX) will take approximately two weeks to complete the listing process and other necessary arrangements, and these innovative ETFs will soon be launched in the region. It suggests that.
conclusion
The approval of spot Bitcoin and Ethereum ETFs in Hong Kong reflects a progressive approach to cryptocurrency investment opportunities and provides investors with new avenues to participate in the digital asset market. This development coincides with growing interest in cryptocurrencies and highlights the evolving regulatory landscape in the region.
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