Journalists learned the start date of Bitcoin ETF trading in Hong Kong

Trading of the spot Bitcoin ETF launched by Bosera Capital and HashKey Capital on the Hong Kong Stock Exchange will start on April 30. Bloomberg writes about this with reference to representatives of companies.

On April 15, the Hong Kong Securities and Futures Commission approved applications by Boshi International, HashKey Capital, China Asset Management and Harvest Investment to launch spot Bitcoin and Ethereum ETFs.

According to agency analyst Rebecca Sin, the inflow of funds into this product category could reach $1 billion within two years.

“In Hong Kong there is no BlackRock effect to rely on. ETF demand expectations should match the scale of the city’s financial sector.” — commented One Satoshi co-founder Roger Lee.

Digital gold futures-based exchange-traded funds CSOP Bitcoin Futures, CSOP Ether Futures and Samsung Bitcoin Futures are currently listed in Hong Kong. Their total assets are ~$175 million. For comparison, the US-registered counterpart ProShares Bitcoin Strategy ETF is $2.5 billion.

The agency said that, unlike US-approved BTC-ETFs, their competitors in Hong Kong will have a subscription and in-kind redemption mechanism. This allows the underlying assets to be exchanged for shares of exchange-traded funds and vice versa, while their American counterparts operate on a cash redemption model.

According to Wintermute co-founder Evgeniy Gaevoy, this approach is “particularly attractive for cryptocurrencies, market makers and platforms,” as it allows for increased efficiency and expanded arbitrage opportunities.

Experts interviewed doubted that investors from mainland China would have access to BTC-ETC in Hong Kong.

Let us remind you that Bloomberg analyst Eric Balchunas said that a cryptocurrency ETF listed in Hong Kong would be “lucky” if they manage to raise a total of $500 million. The expert called the $25 billion predicted by Matrixport “madness.”

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