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Hong Kong-listed Spot Bitcoin and Ethereum exchange traded funds (ETFs) are set to debut within minutes. In anticipation of this launch, Zhu Haokang, Digital Asset Management Director and Family Wealth Director at China Asset Management, said that the launch size of Hong Kong's virtual asset spot ETF will be larger than the US's initial 125 million yen. I am confident that it will exceed the million dollar scale.
“We are very confident that the size of the new Hong Kong crypto asset spot ETF listing (more than $125 million) has the potential to exceed the first-day issuance size in the US,” Haokang said at a press conference.
Mr. Hao Kang said that while mainland Chinese investors are prohibited from participating in these ETFs, Hong Kong accredited investors, institutional investors, retail investors and international investors who comply with the regulations have the green light. acknowledged.
He also noted that ETFs are attracting significant interest globally, particularly from regions such as Singapore and the Middle East, where similar products do not exist. The physical subscription method allows Bitcoin miners to invest directly using their Bitcoin holdings.
OSL's Wayne Huang clarified that due to the Hong Kong Securities and Futures Commission's (SFC) independent regulatory process, the potential classification of Ethereum as a security in the US will not impact Hong Kong's crypto ETFs.
Huang added that Hong Kong is able to launch the world's first Spot Ethereum ETF because the SFC considers Ethereum as a non-security virtual asset and has already clearly defined the regulatory framework.
“Hong Kong already has a clear definition of Ethereum. Although Ethereum is not a security, it is the first non-securities virtual asset to be subject to Hong Kong supervision, along with Bitcoin, making it two objects that can be offered to individual investors. It's one of those things,” Huang said.
Additionally, it reported that discussions are underway to expand the range of virtual assets available in Hong Kong's ETF market.
This launch is expected to have a positive effect on cryptocurrency prices by increasing liquidity, facilitating regulatory compliance, and opening up new capital channels.
Bloomberg ETF Analyst Eric Balchunas comments on the upcoming debut of Bitcoin and Ethereum ETFs in Hong Kong, which presents an opportunity to directly compare demand and investment flows for Ethereum and Bitcoin ETFs. suggests that it will be.
He estimates that Ethereum could capture less than 10% of net flows compared to Bitcoin.
Also note that this is the first time we have a clear picture of how popular Eth is compared to BTC in ETF form. What percentage of net flow do you think he will get? I think he will get less than 10%, but James is more optimistic. https://t.co/ZKggtAGQIH
— Eric Balchunas (@EricBalchunas) April 29, 2024
Previously, Balchunas said that given the early stage of the Hong Kong ETF market, which currently has only $50 billion in assets, and other factors such as fee structures and Chinese investor trends, the launch will have a modest impact. He said that it was likely to be minor compared to the US market. limit.
However, he sees Hong Kong-listed crypto ETFs as a long-term positive for Bitcoin adoption.
Bitcoin price has increased in the past few hours. It is now trading at $64,000, up more than 1.5% after falling below $62,000 earlier today, according to CoinGecko.
Meanwhile, Ethereum has fallen 1.4% in the past 24 hours and is hovering around $3,200.
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