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Hong Kong will launch new bitcoin and ethereum ETFs tomorrow at 9:30 am EDT, with higher initial trading volume expected than in the United States.
“I am very confident that the trading scale of Hong Kong virtual asset spot ETF on the first day of listing can exceed that of the United States.” saying Zhu Haokang, head of Huaxia family wealth and digital asset management.
The United States recorded first-day trading volume of $125 million across ten bitcoin spot ETF issuers earlier this year, a figure Hong Kong aims to surpass.
The ETFs will feature unique elements not present in their US counterparts, such as in-kind redemptions and subscriptions and the ability to handle transactions in multiple currencies, including Hong Kong dollars, US dollars and RMB. Additionally, ETFs will allow wallet-to-wallet transfers, enhancing their appeal to a global audience.
OSL ETF project leader Wayne Huang highlighted the strong regulatory framework in Hong Kong that supports these initiatives.
“Hong Kong may be the first in the world to launch an ethereum spot ETF,” Huang explained, emphasizing the clear and established guidelines of the China Securities Regulatory Commission regarding the classification of cryptocurrencies such as ethereum (eth) as not values.
Despite the progress, investors from mainland China are currently excluded from participating in these ETFs, although international, institutional and retail investors from Hong Kong and other regions are eligible.
The Hong Kong market's approach, particularly its operational processes such as physical subscriptions and rigorous anti-money laundering measures, sets a new benchmark in the cryptocurrency ETF space.
“Physical underwriting is a pioneering initiative for Hong Kong ETFs,” Huang said, detailing the steps required for investors to securely transfer their digital assets through approved brokerage firms.
