According to The Block, Hong Kong asset managers, including units of China Asset Management (ChinaAMC) and Harvest Global, could launch a Bitcoin Spot ETF as soon as this month.
OSL President and CEO Patrick Pan said: “Reports suggest the Spot ETF could launch at the end of April, followed by the ETH Spot ETF. All parties are working quickly to complete the process. However, the exact date has not been confirmed at this time.”
Mr. Pan also Chia a positive view on the recent approval , arguing that it brings the industry closer to launching a Crypto Spot ETF.
Previously, the Hong Kong Securities and Futures Commission gave in-principle approval to several asset managers, including those managed by ChinaAMC, Harvest, Bosera and HashKey, to offer Bitcoin and Ethereum Spot ETF. OSL will Vai as the sub-custodian and infrastructure services provider for the ETFs issued by ChinaAMC and Harvest.
Ms. He, Head of Product and Strategy at ChinaAMC (HK), said investors based in Hong Kong will have three options to access the Crypto Spot ETF:
- Access Bitcoin Spot on SFC-licensed VATPs (Virtual Asset Exchanges).
- Access through Bitcoin or Ether ETFs based on Futures Contract .
- Access US-listed Spot ETFs (but only for professional investors).
However, Bloomberg analyst Eric Balchunas is cautious. He said the Hong Kong ETF market is small and limited access for mainland Chinese investors could hurt the currency. The Stock Connect program currently does not allow mainland investors to invest in cryptocurrency futures ETFs, leaving the prospect of attracting Capital from this market open.
Even so, the development of a Hong Kong spot cryptocurrency ETF could still attract international investor interest and promote the development of the cryptocurrency market in the region.
Latest on HK spot Bitcoin ETFs: They have been approved to exist but not launch (yet). Rumor has it launching next wk so to not compete w Dubai conf. Don't expect a lot of flows (I saw one estimate of $25b that's insane). We think they'll be lucky to get $500m. Here's why:
— Eric Balchunas (@EricBalchunas) April 15, 2024
1. HK…
What differentiates the Hong Kong spot cryptocurrency ETF is its in-kind trading feature, which allows investors to convert actual Bitcoin into an ETF. This helps minimize security risks compared to investing directly in Bitcoin, while also providing professional management from reputable investment funds. This feature promises to attract investors interested in owning Bitcoin in a safe and transparent way.
