Key Points
- Tomorrow, April 30, Hong Kong is expected to list Bitcoin and Ethereum ETFs.
- Hong Kong’s ETF issuer expressed confidence that the issuance scale of the ETFs will surpass the inflows of 1st day ETFs in the US of $125 million.
Hong Kong is about to launch the first batch of Bitcoin and Ethereum ETFs tomorrow, April 30. The move follows in the footsteps of the US which saw the launch of BTC ETFs at the beginning of this year, witnessing a huge success.
The inflow in the US ETFs was $125 million, while the total trading volume on the first day was $4.6 billion.
The launch brings optimism for Asia crypto investors after witnessing the success of the US-approved BTC ETFs.
Hong Kong ETF issuers expressed high confidence that the issuance scale of the ETFs on the first day of listing will surpass day one in the US.
China AMC Limited held a press briefing today on “Asia Premiere – Spot ChinaAMC Bitcoin ETF and Spot ChinaAMC Ethereum ETF.” Foresight News was at the meeting and revealed important details.
In this press briefing, Zhu Haokang, head of digital asset management and family wealth of China Asset Management (Hong Kong), and Wayne Huang, head of OSL ETF and custody business, addressed the upcoming event in Hong Kong and expectations.
Predictions about the scale of capital inflows on day 1 of crypto ETF listing
Zhu Haokang stated that he’s very confident that the trading scale of the Hong Kong crypto ETFs on the first day of listing can exceed the trading scale of the first day of BTC ETF listing in the US. He continued and highlighted that the issuance scale of the 10 US BTC ETF issuers on the first day, January 10, was of $125 million.
China Asset Management is confident that it will become the ETF issuer with the largest trading volume on day one.
He also revealed that the details will be made public tomorrow morning.
Wayne Huang also said that the Hong Kong Stock Exchange will make an announcement, but OSL has completed its first day of raising funds. He noted that judging by the numbers, the transactions are far greater than the capital of the US Bitcoin ETFs during the first trading day.
Haokang also addressed the difference between the crypto products in the US and Hong Kong, saying that, unlike the BTC ETFs in the US, they have spot and physical subscriptions and redemptions – the United States lacks these.
Also, the difference between ChinaAMC’s products and the other ones in Hong Kong is that their spot ETF is the only one with Hong Kong dollar, US dollar, and RMB counters. The second difference is that besides the listed shares, they have unlisted shares as well.
WuBlockchain reported that many investors in Singapore, the Middle East, and other places are very interested in crypto subscriptions. Also, the United States’ debate regarding Ethereum being a security does not affect Hong Kong. Hong Kong has long defined Ethereum as not a security.
HKEX is already trading Bitcoin futures, crypto ETFs making their debut on HKEX with the introduction of the CSOP Bitcoin Futures ETF and the CSOP ETH Futures ETF, both managed by CSOP Asset Management.
Samsung Asset Management Hong Kong followed next and launched another Bitcoin ETF, the Samsung BTC Futures Active ETF, in January 2023.
The futures crypto ETFs on HKEX have 1.3 billion Hong Kong dollars ($170 million) in assets under management as of today, April 29, 2024, HKEX notes.
Bloomberg recently published an article analyzing Hong Kong’s ambition to be a digital asset hub, and noting that the trading of BTC and ETH ETFs will be a move that tests this aim.
An important note is the fact that Mainland China investors won’t be able to buy Hong Kong Bitcoin ETFs because mainland China banned crypto transactions years ago.
