 ▲ Bitcoin (BTC) Exchange Traded Fund (ETF) © Coin Leaders |
As the Hong Kong Securities and Futures Commission (SFC) officially approved the launch of Bitcoin and Ethereum (ETH) spot exchange-traded fund (ETF) on the 24th, ETF trading by China Asset Management (ChinaAMC) is scheduled to begin on the 30th.
According to Foresight News, China Asset Management, the Hong Kong Ethereum ETF issuer, held a press conference and said, “The trading volume of our cryptocurrency spot ETF, the first to be traded in Hong Kong, is expected to exceed the first-day trading volume in the United States ($125 million). “I do,” he said.
He said, “Unlike the United States, we allow both in-kind and cash repayment. Thanks to this, a large number of Bitcoin mining companies participated in this subscription. They can purchase cryptocurrency spot ETFs directly in Hong Kong using the BTC they own. We also contacted investors in many countries where BTC spot ETFs have not yet been approved, such as Singapore and the Middle East. “In addition, since transaction times are different from those in the United States, we can absorb another demand base,” he explained.
He added, “Even if the U.S. Securities and Exchange Commission (SEC) classifies Ethereum (ETH) as a security, Hong Kong ETF products will not be significantly affected.”
On the other hand, Blockworks cited a Bloomberg Intelligence report and reported that the performance of Hong Kong's first BTC/ETH spot ETF is expected to be minimal compared to US funds.
The report said, “The total inflow of the Hong Kong cryptocurrency fund within two years after its launch is expected to be $1 billion. It will account for about 2% of the local ETF market ($50 billion),” adding, “Chinese investors will not be able to purchase the product.” “This will have a big impact,” he explained.
He continued, “The Asian retail market prefers volatility. Considering that they like it the more it fluctuates, this product is a good fit for Asia.”
According to CoinMarketCap, a global cryptocurrency price relay site, as of 7:10 am on April 30 (Korean time), the price of 1 Bitcoin was $63,123, down 0.69% from 24 hours ago.
This price is down 14.37% from the all-time high of $73,750.07 achieved on March 14th.
