Bitcoin

April

James

<h2 id="key-points">Key Points</h2>
<ul>
 <li>Hong Kong’s Securities and Futures Commission approves the first batch of Bitcoin and Ether ETFs.</li>
 <li>The ETFs are set to begin trading on April 30, offering investors a safer way to invest in digital assets.</li>
</ul>
<p>Hong Kong’s financial watchdog, the Securities and Futures Commission (SFC), has given the green light for the first batch of spot Bitcoin and Ether exchange-traded funds (ETFs) to commence trading on April 30.</p>
<p>The inaugural group of approved ETFs includes those based on Bitcoin and Ether from China Asset Management (ChinaAMC), which will also begin trading on the aforementioned date.</p>
<h2 id="investing-in-digital-assets">Investing in Digital Assets</h2>
<p>According to Thomas Zhu, head of digital assets and family office business at ChinaAMC, these ETFs will provide retail and institutional investors with a safer and more convenient method of investing in the underlying digital assets within a regulated framework.</p>
<p>He further emphasized that the ETFs’ in-kind feature would attract coin holders by offering the ease of converting coins to fully regulated ETFs managed by professional fund managers and regulated custodians.</p>
<p>Hong Kong currently boasts over 205 approved ETFs, as per the SFC’s homepage.</p>
<h2 id="etf-creation-models">ETF Creation Models</h2>
<p>Unlike the cash-creation model used by U.S. spot Bitcoin ETFs, Hong Kong plans to implement in-kind creation models for ETFs, allowing for the creation of new ETF shares using Bitcoin and Ether.</p>
<p>This approach could significantly increase assets under management (AUM) and trading volume for these products, according to a research note by Bloomberg ETF analyst Rebecca Sin.</p>
<p>The introduction of the first ETFs in Hong Kong could potentially spark a fee war among issuers, with each striving to offer the lowest fees to customers, as per Bloomberg ETF analyst James Seyffart.</p>
<p>The fees for the initial ETFs are already lower than anticipated, a promising sign according to Eric Balchunas, senior ETF analyst at Bloomberg.</p>

Hong Kong ushers in Bitcoin and Ether ETFs, set to kick off trading on April 30

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