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As Hong Kong prepares for the debut of its first bitcoin and ethereum spot ETFs, expectations are growing that initial trading volumes will eclipse those seen during similar launches in the US, according to local media. reported on April 29.
Huaxia Fund Management (Hong Kong), together with digital asset services provider OSL, are leading the launch of these ETFs, which will begin trading on the Hong Kong Stock Exchange on April 30.
During a press conference held on the eve of the launch, Huaxia's head of digital assets, Zhu Haokang, expressed great confidence in the potential of ETFs and projected that trading volume could exceed the $125 million recorded on the first day. by the bitcoin spot ETFs launched in the United States in January.
Zhu said the funds had seen strong interest ahead of launch, which is further bolstered by ETFs offering options for both cash and physical redemptions, which are not available in the US market. Besides,
Zhu said:
“We anticipate setting a new record for a crypto ETF debut in Hong Kong.”
Meanwhile,
OSL's Wayne Huang detailed operational preparation and emphasized that substantial funds had already been mobilized in anticipation of the launch. He added that pre-market transactions suggest strong demand that is expected to continue until the first day of official trading.
The ETFs, which are the first in Asia to offer spot trading of bitcoin and ethereum directly through an exchange, aim to attract both local and international investors by offering more flexible investment mechanisms compared to their US counterparts.
The launch is seen as a pivotal moment for Hong Kong's digital asset market, positioning the city as a leading global financial center in the burgeoning digital asset sector. Both Huaxia and OSL highlighted the regulatory clarity and innovative trading features of their products as key factors expected to drive their success and attract a diverse investor base, including those from regions without existing crypto ETFs, such as Singapore and the Middle East.
Meanwhile, some analysts recently predicted that Hong Kong-based bitcoin ETFs are unlikely to receive more than $1 billion in total inflows in the first year, based on the size of the market and the fact that at Investors from mainland China will not be allowed to interact with them.
