- The first six spot exchange-traded funds based on crypto assets will enter the Hong Kong market on April 30.
- These are products from four providers, two of which manage the funds jointly.
- Experts predict that the sector will attract up to $1 billion in the first two years.
Trading for Bitcoin and Ethereum spot ETFs in Hong Kong will begin on April 30, 2024. Bloomberg reports this with reference to a representative of one of the ETF providers, the Hashkey company.
Preliminarily, the list of approved exchange-traded funds is as follows:
- Bosera Hashkey Bitcoin ETF;
- Bosera Hashkey Ether ETF;
- China AMC Bitcoin ETF;
- China AMC Ether ETF;
- Harvest Bitcoin Spot ETF;
- Harvest Ether Spot ETF.
The information was confirmed by Bloomberg Intelligence analyst Eric Balchunas. He also published details regarding these products. The commission for fund management ranges from 0.3% to 0.99% – below the expected level, the expert emphasized.
Despite the positive effect on the industry as a whole, cryptocurrency ETFs are unlikely to replicate the success of such funds in the United States. This thesis was expressed by another Bloomberg Intelligence analyst, Rebecca Sin.
According to her, in Hong Kong, spot ETFs will attract up to $1 billion within the first two years.. However, local funds are not without advantages, said Thomas Zhu, head of digital assets at ChinaAMC, as quoted by Cointelegraph.
It should be noted that in the USA the regulator insisted on the use of authorized partners for the issue/redemption of shares in fiat. ETF issuers opposed it because it increased the tax burden.
Information that the Hong Kong regulator approved the launch of spot exchange-traded funds based on Bitcoin and Ethereum appeared on April 15, 2024.
Let us recall that on April 23, a capital inflow of $32 million was recorded in the spot Bitcoin ETF sector in the United States.