- Top Chinese asset managers like HashKey Capital and Bosera are set to begin trading spot Bitcoin and Ethereum ETFs by April 30.
- These ETFs will use an in-kind subscription and redemption mechanism, contrasting with the cash redemption model used by US funds.
On April 15, the Hong Kong Securities and Futures Commission (SFC) approved multiple spot Bitcoin and Ethereum exchange-traded funds (ETFs).
Bringing excitement for Asian crypto investors, Bloomberg reported that some of the top asset managers in China such as HashKey Capital and Bosera are in the final stage of preparations to kickstart trading by April 30.
Hong Kong is set to follow in the footsteps of the US by listing a batch of cryptocurrency ETFs, providing a window on whether the city is making progress on fashioning a hub for digital assets https://t.co/oCBDlpwJap
— Bloomberg Crypto (@crypto) April 23, 2024
Additionally, the asset management firms note that Hong Kong spot ETFs will implement an in-kind subscription and redemption mechanism, facilitating the exchange of underlying assets for ETF units and vice versa, unlike the cash redemption model employed by US funds.
Bloomberg also stated that this launch will likely invite comparison with a slew of three-month-old US Bitcoin funds that took Wall Street by storm, garnering $56 billion in assets to date.
Not to mention, for over a year, Hong Kong has been competing with Singapore and Dubai to create a tightly regulated hub for the virtual asset industry. And these newly launched spot ETFs and their demand will indicate how Hong Kong progresses in its efforts to become a hub for digital assets.
Edited by Harshajit Sarmah
