Bitcoin

Ethereum

<p>The first tranche of spot Bitcoin and Ether exchange-traded funds (ETFs) have been officially approved to start trading in Hong Kong on April 30.</p><h2 id="header-0">Announcement from regulator</h2><p>Hong Kong’s Securities and Futures Commission (SFC) announced the official approval of the first batch of spot Bitcoin and Ether ETFs on April 24 via a press release <a href="https://cointelegraph.com/news/hong-kong-bitcoin-ether-etfs-start-trading-april-30" rel="noopener noreferrer nofollow">seen</a> by CoinTelegraph. The regulator first provided outline <a href="https://news.bitcoin.com/hong-kong-approves-first-spot-bitcoin-and-ethereum-etfs/" rel="noopener noreferrer nofollow">approval</a> for these products on April 15.</p><p>Additionally, some of the fund management firms themselves have come out to outline product trading commencement at the end of the month. The first batch of approved Hong Kong-based ETFs include China Asset Management’s (ChinaAMC) Bitcoin and Ether-based ETFs.  In a <a href="https://www.chinaamc.com.hk/wp-content/uploads/2024/04/ChinaAMC-HKs-Spot-Bitcoin-and-Ether-ETFs-Receives-Approval-from-SFC.pdf" rel="noopener noreferrer nofollow">press release</a>, the firm verified that its products will begin trading on April 30.</p><p>HashKey Capital and Bosera Asset Management have partnered to offer similar spot products. A spokesperson for HashKey <a href="https://www.bloomberg.com/news/articles/2024-04-23/hong-kong-bitcoin-btc-ether-eth-etf-launches-to-test-crypto-hub-ambition?embedded-checkout&#61;true" rel="noopener noreferrer nofollow">told</a> Bloomberg that they’re ready to commence trading of the product at the end of the month.</p><h2 id="header-1">In-kind vs. cash-only approach</h2><p>Harvest Global Investments is the third fund manager that intends to launch such a product offering. The launch of these three spot Bitcoin and Ether-based ETFs on April 30 signals a new era for digital asset investment in Hong Kong.</p><p>Unlike their counterparts in the U.S., which rely on a cash creation model, these ETFs in Hong Kong embrace an in-kind creation mechanism. This approach holds the potential to significantly boost assets under management (AUM) and trading volume, as highlighted by Bloomberg ETF analyst Rebecca Sin. The unique dynamics of Hong Kong&#39;s ETF creation model present an opportunity for market growth and innovation, positioning the region as a key player in the global digital asset landscape.</p><p>By providing a regulated framework for retail and institutional investors, along with the ease of converting digital assets into fully regulated ETFs, ChinaAMC aims to cater to a growing demand for such offerings. China Asset Management’s Head of Digital Assets, Thomas Zhu, emphasized in the firm’s press release the in-kind creation feature.</p><h2 id="header-2">Potential fee war</h2><p>As the ETF market in Hong Kong gains momentum, competition could result in downward pressure on fees. With issuers vying to offer the most competitive fees to attract customers, the stage is set for a potential battle of pricing strategies. Harvest, for instance, has already entered the fray with a full fee waiver and the lowest fee at 0.3% after the waiver, Bloomberg ETF analyst James Seyffart <a href="https://x.com/JSeyff/status/1783088747854311583" rel="noopener noreferrer nofollow">outlined</a> on the X social media platform.</p><p>This competitive landscape bodes well for investors, with fees for the first ETFs proving to be lower than expected, as noted by Eric Balchunas, senior ETF analyst at Bloomberg. All eyes will be on the performance and impact of these financial products relative to the crypto market in the Asian region and further afield.</p>

Spot BTC, ETH ETFs to commence trading on April 30 in Hong Kong

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