Hong Kong to Launch Bitcoin ETF Trading on April 30

Trading of the spot Bitcoin ETF, launched by Bosera Capital and HashKey Capital on the Hong Kong Stock Exchange, will commence on April 30. This information comes from firm representatives, as reported by Bloomberg.

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

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

“There is no ‘BlackRock effect’ in Hong Kong to rely on. Expectations for ETF demand should match the scale of the city’s financial sector,” commented One Satoshi co-founder Roger Lee.

Currently, Hong Kong has listed exchange-traded funds based on digital gold futures: CSOP Bitcoin Futures, CSOP Ether Futures, and Samsung Bitcoin Futures. Their total asset volume is approximately $175 million. In comparison, the US-registered ProShares Bitcoin Strategy ETF stands at $2.5 billion.

The agency reported that, unlike the approved US BTC-ETFs, their Hong Kong counterparts will feature a subscription and redemption mechanism in kind. This allows for the exchange of underlying assets for ETF shares and vice versa, whereas American counterparts operate on a cash redemption model.

According to Wintermute co-founder Evgeny Gaevoy, this approach is “particularly attractive for cryptocurrencies, market makers, and platforms,” as it enhances efficiency and expands arbitrage opportunities.

Experts questioned whether investors from mainland China will gain access to BTC-ETC in Hong Kong.

Bloomberg analyst Eric Balchunas stated that cryptocurrency ETFs listed in Hong Kong would be “lucky” to collectively attract $500 million. The expert called Matrixport’s projected $25 billion “madness.”