Hong Kong Launches First Batch of Cryptocurrency ETFs, Anticipates $300M Inflows
Hong Kong Launches First Batch of Cryptocurrency ETFs, Expected to See $300M Inflows on First Day
Hong Kong has entered the cryptocurrency ETF market with the launch of six new spot-crypto ETFs, with issuers expecting approximately $300 million in combined first-day inflows. The ETFs, focusing on popular cryptocurrencies like Bitcoin and Ether, are set to compete with similar products in the United States.
Harvest Global Investments Ltd. and a partnership between HashKey Capital Ltd. and Bosera Asset Management (International) Co. listed the Bitcoin and Ether ETFs in Hong Kong, marking a significant milestone in the city’s financial sector.
In the US, spot Bitcoin ETFs have gained popularity, accumulating billions in assets since their launch earlier this year. Bloomberg Intelligence’s Rebecca Sin estimates that the new Hong Kong ETFs could amass around $1 billion over the next two years.
Despite challenges posed by Hong Kong’s smaller financial sector, the local products offer easy access, particularly during Asian trading hours. The adoption of an in-kind ETF subscription and redemption mechanism sets Hong Kong apart from the US, potentially attracting more investors to the market.
While the recent rebound in digital assets has stalled, the launch of these new ETFs in Hong Kong could reignite interest in the cryptocurrency market. With Bitcoin’s price hovering around $63,540, investors are closely watching the performance of these new products in the coming days.
