Asian Crypto Venture Firms Launch $128M ETF Liquidity Fund in Hong Kong

Three prominent Asian crypto venture firms, LD Capital, Antalpha Ventures, and Highblock, have collaborated to launch Hong Kong’s first-ever ETF liquidity fund. The fund, valued at approximately $128 million (HK$1 billion), aims to enhance market activity for crypto ETFs in Hong Kong. By acting as market makers, ETF liquidity funds improve trading ease by continuously buying and selling ETF shares, resulting in a smoother market and enabling investors to easily enter or exit positions without significant price fluctuations. Comparable crypto ETF liquidity funds such as B2Broker, Flow Traders, and Virtu Financial have seen success in this space. This development aligns with Hong Kong’s efforts to establish itself as a thriving hub for digital assets, with the recent approval of several cryptocurrency ETFs by the Securities and Futures Commission. These new ETFs have already accumulated $230 million in assets under management within their first week, potentially attracting significant demand from Chinese wealth and Asia-Pacific crypto exchanges and market makers.