Hong Kong Set to Debut First Bitcoin and Ethereum ETFs with High Expectations
Hong Kong Set to Debut First Bitcoin and Ethereum ETFs, Expected to Break Trading Volume Records
As Hong Kong prepares for the launch of its first spot Bitcoin and Ethereum ETFs, anticipation is building for record-breaking trading volumes on April 30. Huaxia Fund Management (Hong Kong) and OSL are leading the charge in bringing these ETFs to the Hong Kong Stock Exchange, with high expectations for their success.
During a press briefing ahead of the launch, Zhu Haokang, head of digital assets at Huaxia, expressed confidence in the ETFs’ potential, projecting that trading volumes could surpass the $125 million recorded on the first day of trading for similar ETFs in the US. The funds have already seen strong interest pre-launch, with options for cash and physical redemptions not available in the US market.
“We anticipate setting a new record for a crypto ETF debut in Hong Kong,” Zhu stated.
OSL’s Wayne Huang detailed the operational readiness for the launch, noting that substantial funds had been mobilized in preparation. Pre-market transactions suggest strong demand, which is expected to continue into official trading.
These ETFs, the first in Asia to offer spot trading of Bitcoin and Ethereum directly through an exchange, aim to attract both local and international investors with more flexible investment mechanisms than their US counterparts. The launch is a significant moment for Hong Kong’s digital assets market, positioning the city as a global financial hub in the growing sector.
Regulatory clarity and innovative trading features are highlighted as key factors driving the success of these products, appealing to a diverse investor base including those from regions without existing crypto ETFs. However, some analysts predict that total inflows for the Hong Kong-based Bitcoin ETFs may not exceed $1 billion in the first year due to market size and restrictions on mainland Chinese investors.
Overall, the debut of these ETFs marks a milestone for Hong Kong’s financial sector and sets the stage for further growth and innovation in the digital assets market.
