ASIA’S FIRST BITCOIN, ETHER ETFS LAUNCHED IN HONG KONG

Tue 30 April 2024:

As Hong Kong started trading Asia’s first spot bitcoin and ether exchange-traded funds (ETFs) on Tuesday, it achieved a significant milestone in its goal to become a regional center for virtual asset investment.

The move comes after the US, which opened the door for regular investors to include Bitcoin in their portfolios by using exchange-traded funds (ETFs) linked to the spot price of the cryptocurrency.

Three managers, Bosera Funds, China Asset Management (Hong Kong) Limited, and Harvest Global Investments, introduced six funds to the Hong Kong stock exchange. The products were spot bitcoin and ether ETFs that could be traded in Hong Kong and US dollars.

ChinaAMC (HK) additionally enabled trading in Chinese yuan, expanding the accessibility of digital assets to investors.

In the early hours of trading, the new ETFs showed promising performance, with price increases ranging from 0.62 per cent to 3.81 per cent, highlighting investor interest and confidence in the emerging asset class.

Despite predictions that these funds may not attract inflows comparable to their US counterparts, industry experts remain optimistic about their potential to catalyse broader adoption of digital assets globally.

The inclusion of bitcoin and ether ETFs in Hong Kong’s financial ecosystem comes with the city’s efforts to position itself competitively against established financial centres like the US, leveraging its unique advantages such as in-kind trading.

Unlike traditional ETFs, which primarily transact in fiat currencies like the US dollar, Hong Kong’s approach allows investors to conduct in-kind creation and redemption through eligible dealers, facilitating direct investment using bitcoin and ether.

While demand for bitcoin ETFs in the United States has slowed after an initial rise in February, Hong Kong’s entry into digital asset investment represents a broader trend toward adopting cryptocurrencies and blockchain technology.

Hong Kong’s regulatory organizations, including the Securities and Futures Commission, are encouraging retail investment in digital asset funds, leading to increased interest from fund managers looking to capitalize on the growing sector.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

______________________________________________________________

FOLLOW INDEPENDENT PRESS:

WhatsApp CHANNEL
https://whatsapp.com/channel/0029VaAtNxX8fewmiFmN7N22