Hong Kong Bitcoin and Ethereum ETF Launches Spark Speculation of Potential Demand
Zhu Haokang, head of digital asset management at China Asset Management (China AMC), foresees significant interest in the debut of spot bitcoin and ethereum exchange-traded funds (ETFs) in Hong Kong. Drawing parallels with the U.S., where 11 spot bitcoin ETFs were approved in January, Haokang anticipates record-breaking trading volumes on the first day of trading.
In an interview with Beijing’s Foresight News, Haokang discussed the unique features of China AMC’s ETF compared to its competitors. He highlighted the inclusion of spot and physical subscription and redemption options, distinguishing it from U.S. counterparts. Additionally, China AMC’s ETF offers the flexibility of counters in Hong Kong dollars, U.S. dollars, and renminbi, along with unlisted shares, setting it apart from other offerings.
Wayne Huang, Head of ETF and custody business at OSL, elaborated on the process of physical subscription, emphasizing its innovative nature for Hong Kong ETFs. This process involves brokerage firms upgrading their licenses to handle virtual asset transactions, enabling investors to transfer coins to OSL through designated brokers and subsequently transferring equity back into the fund’s custody account.
Executives from Hashkey Capital and Bosera highlighted the accessibility of their ETFs to non-Hong Kong residents who meet regulatory standards, suggesting potential interest from mainland China investors. Matrixport predicted significant capital influx from mainland investors through the Southbound Connect program in Hong Kong.
However, Bloomberg’s senior ETF analyst Eric Balchunas expressed a more conservative estimate of total flows, suggesting that reaching $500 million would be optimistic.
