The latest update: April 24, 2024 – 08:02 EDT | Read 2 minutes
A report by BloombergThe Bosera-HashKey Capital Spot ETFs are scheduled Trading will begin on 30 April.
Hong Kong Securities and Futures Commission recently Give approval for several fund managers These ETFs are available In a bid To establish itself as the hub for digital assets, by introducing an array of cryptocurrency ETFs.
Chinese asset managers have also been preparing to introduce spot Bitcoin ETFs and Ether funds, comparing them to the US Bitcoin Funds that were launched three months ago. They’ve amassed $56 billion worth of assets.
Chinese investors may show interest in Hong Kong ETFs
The Chinese investment in Hong Kong is a potential source of demand for Hong Kong spot crypto ETFs. As well as Asia-Pacific cryptocurrency exchanges and marketmakers
Bloomberg Intelligence ETF Analyst Rebecca Sin estimates These are the Over the next two decades, funds may manage assets worth $1 billion.
Bitcoin funds from major US players such as BlackRock Inc., and Fidelity Investments attracted global attention and significant investment.
The potential Hong Kong issuers include Harvest Global Investments Ltd. HashKey Capital Ltd. and Bosera Asset Management Co. may not have the same recognition.
Giant #Bitcoin Hong Kong ETF Ads Spotted pic.twitter.com/7RTzg5fxsj
The Crypto News @TCNCRYPTO 15 April 2024
Roger Li, the co-founder and CEO of One Satoshi in Hong Kong, which is a chain of shops that converts cash to cryptocurrency, said on Bloombertthat expectations for ETF Demand Should Be Adjusted Consider the smaller size of the financial sector in this city.
US Securities and Exchange Commission (SEC) reluctantly allows ETFs Investing in The market was volatile and there have been frauds in the past.
Ether is the second largest digital asset. Approving ETFs will present more challenges.
Hong Kong, on the other hand, has approved initial approval of spot-Bitcoin HashKey Capital’s and Bosera’s offerings, however, will use a subscription mechanism that is in the form of a physical product.
The US fund redemption method is a cash-based model. This allows for a direct exchange of the underlying asset for ETFs, which offers greater efficiency and opportunities for arbitrage compared with the ETF unit purchase.
Hong Kong offers futures-based ETFs
A framework is being developed for stablecoins and the city has already permitted crypto-based futures ETFs.
Hong Kong’s success as a hub for crypto remains in doubt, but ETF launches are benefiting from Bitcoin’s strong rally of the last year. This has attracted significant interest among Bitcoin owners.
It will take some time before the infrastructure for virtual assets ETFs is ready Fully developOpening the doors to more participants and improving market conditions.
The demand for cryptocurrency remains high as digital assets gain in popularity, despite a mixed stock market outlook and weakening real estate.
Crypto trading on the mainland is banned, and this leads to underground activities. The upcoming Hong Kong fund launches are unlikely to be accessible to Chinese investors who access Hong Kong ETFs via specific programs.