Hong Kong is gearing up for the launch of the long-awaited spot Bitcoin and Ethereum Exchange traded funds (ETFs) by the end of April.
According to a report from bloombergBosera-HashKey Capital Spot ETF is scheduled Trading will begin on April 30th.
The Hong Kong Securities and Futures Commission (SFC) recently approval was given to several fund managers To offer these ETFs by bidding By introducing various cryptocurrency ETFs, we will establish ourselves as a hub for digital assets.
Chinese asset management companies are also preparing to introduce Bitcoin and Ether spot ETFs, and the U.S. Bitcoin, which has accumulated an astonishing $56 billion in assets so far and has been a huge success in just three months since its establishment. Comparing with funds.
Chinese investors may be interested in Hong Kong ETFs
Potential sources of demand for a Hong Kong spot crypto ETF include Chinese wealth invested in Hong Kong. similarly Cryptocurrency exchange and market maker in Asia Pacific.
Forecasts from Bloomberg Intelligence ETF analyst Rebecca Singh these Over the next two years, the fund's assets under management could reach $1 billion.
U.S.-based Bitcoin funds offered by major firms such as BlackRock Inc. and Fidelity Investments have sparked global interest and attracted significant investment.
However, Harvest Global Investments Limited, hash key Capital Ltd. and Bosera Asset Management (International) Co. may lack the same level of recognition.
💰 Giant #bitcoin Spot ETF ads found in Hong Kong 🇭🇰 pic.twitter.com/7RTzg5fxsj
— Crypto News 🗞️ (@TCNCRYPTO) April 15, 2024
Roger Lee, co-founder of One Satoshi, a Hong Kong-based chain of stores that offers cash-to-crypto conversion, told Bloomberg. ETF demand needs to adjust Considering the city's small financial sector.
U.S. Securities and Exchange Commission Reluctantly Allows ETFs investment Although he invested directly in Bitcoin earlier this year, he remains skeptical of the cryptocurrency due to market volatility and past fraud incidents.
Approving an ETF for Ether, the second-largest digital asset, could pose additional challenges.
In contrast, Hong Kong spot bitcoin HashKey Capital and Bosera's products are further differentiated in that they utilize in-kind subscription and redemption mechanisms.
This mechanism allows direct exchange of the underlying assets of ETF units, providing greater efficiency and arbitrage opportunities compared to the cash redemption model employed by US funds.
Hong Kong offers futures-based ETF
The city already allows crypto futures-based ETFs and is also developing a stablecoin framework.
While Hong Kong's success as a crypto hub remains uncertain, the ETF's launch has benefited from Bitcoin's impressive rally over the past year and has attracted significant interest from Bitcoin holders.
However, it will take time to develop the infrastructure for crypto asset ETFs. fully developopening the door to more participants, increasing liquidity and improving market conditions.
As digital assets continue to grow in popularity in China, demand for cryptocurrencies remains strong despite a mixed stock market outlook and a weak real estate sector.
However, cryptocurrency trading is banned on the mainland, leading to underground activity, and future fund launches in Hong Kong will be out of reach for Chinese investors who access Hong Kong ETFs through specific programs. It is highly likely that
