[NEWS] Asia's first Bitcoin and Ethereum spot ETF begins trading in Hong Kong

On the 30th, the Hong Kong Stock Exchange listed spot ETFs for Bitcoin (BTC) and Ethereum (ETH). This marks the start of trading in Asia's first spot cryptocurrency ETF. Chinese cryptocurrency media PANews and others reported the news.

A total of six Bitcoin and Ethereum spot ETFs from Harvest Fund Management, a Hong Kong subsidiary of China Asset Management, Bosera Asset Management, and HashKey have been trading since 9:30 a.m. The names of the products are "Huaxia Bitcoin ETF (3042.HK)", "Huaxia Ethereum ETF (3046.HK)", "Vocera Hashkey Bitcoin ETF (3008.HK)", "Vocera Hashkey Ethereum ETF (3009.HK)", "Harvest Bitcoin Spot ETF (3439.HK)" and "Harvest Ethereum Spot ETF (3179.HK)".

Hong Kong is aiming to establish itself as a hub for Web 3.0 and attract funds from investors around the world.

In the United States, 11 Bitcoin spot ETFs are being traded, including those of the world's largest asset management companies BlackRock and Fidelity. To date, these Bitcoin spot ETFs have attracted $53 billion (8.3 trillion yen).

Bloomberg Intelligence analyst Rebecca Sin predicted that Hong Kong's crypto spot ETFs could see "$1 billion in inflows" over the next two years.

On the 29th, China Asset Management's Zhu Haokang, head of digital asset management and assets, and Wayne Huang, head of OSL ETF and custody business, said, "We believe Hong Kong will be the largest country in terms of first-day trading volume, surpassing the United States, with three ETFs exceeding $125 million."

They added, "This includes other ETFs that we are working with, such as China Asset Management, but we believe it will be greater than the inflow of first-day trading volume of Bitcoin spot ETFs in the United States."

According to Haokang, Hong Kong's spot ETFs are different from US Bitcoin spot ETFs in that they use a spot creation and redemption (exchange) method. This makes it less likely that the ETF price will diverge from the Bitcoin price traded in the market.

Currently, three companies are issuing cryptocurrency spot ETFs in Hong Kong, but three more, Victory Securities, Huaying Securities, and OSL, are expected to follow suit in the future.

Reference:Press
Image: Shutterstock

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