As Hong Kong gears up for the debut of its first spot Bitcoin and Ethereum ETFs, hopes are rising that initial trading volumes will surpass those witnessed during similar launches in the US. Local media reported on April 29th.
Huaxia Fund Management (Hong Kong) is leading the launch of these ETFs along with digital asset service provider OSL, and they are scheduled to be launched on the Hong Kong Stock Exchange on April 30th.
At a press conference held on the eve of the launch, Zhu Haokang, head of digital assets in Huaxia, expressed strong confidence in the ETF's potential, saying that the first-day volume recorded by the Spot Bitcoin ETF launched in 2018 was 1. It was predicted that it could exceed $25 million. America in January.
Zhu said there has been strong interest in these funds prior to their launch, which has been further fueled by the ETFs offering both cash and in-kind redemption options, which are not available in the U.S. market. moreover,
Zhu said:
“We hope to set a new record for crypto ETF debut in Hong Kong.”
meanwhile,
OSL's Wayne Huang elaborated on operational readiness and highlighted that significant funds have already been mobilized in anticipation of the launch. He added that pre-market trading suggests strong demand that is expected to continue into the first day of official trading.
These ETFs are the first ETFs in Asia to offer spot trading of Bitcoin and Ethereum directly through exchanges, inviting domestic and international investors by offering a more flexible investment mechanism compared to US ETFs. It aims to captivate.
The launch is seen as a pivotal moment for Hong Kong's digital assets market, with the city establishing itself as a major global financial hub in the fast-growing digital assets sector. Both Huaxia and OSL have identified their products as key elements that are expected to drive success and appeal to a diverse investor base, including investors in regions without existing crypto ETFs, such as Singapore and the Middle East. It emphasized regulatory clarity and innovative trading features.
Meanwhile, some analysts recently said that given the market size and the fact that mainland Chinese investors are not allowed to trade, total inflows into Hong Kong-based Bitcoin ETFs could exceed $1 billion in the first year. I predict that the possibility is low. they.
