The Securities and Futures Commission in Hong Kong is planning to allow spot Bitcoin ETFs to have in-kind creation and redemptions during the second quarter of this year. This move comes as Harvest Global and Venture Smart Financial Holdings expressed interest in launching spot Bitcoin ETFs in the region. Although approvals are pending, Bloomberg Intelligence ETF analyst Rebecca Sin believes it is only a matter of time before these products are given the green light. Sin highlights that the SFC's approach of in-kind redemptions contrasts with the US, where cash-only refunds are prevalent for spot-based products. Bloomberg's Eric Balchunas predicts that this shift towards in-kind creation and buybacks in Hong Kong could attract more volume and assets under management in the area. In-kind redemptions are favored by both investors and issuers for its cost, tax, and liquidity benefits compared to cash redemptions, which result in higher taxes and trading expenses. This adjustment in redemption methods could potentially influence the growth of Bitcoin ETFs in the region.
Analysis of Potential Chinese Impact on Bitcoin Spot ETFs by Bloomberg Analyst

by Giorgi Kostiuk
2 years ago

Other news
SpaceX Warns Investors About Viability of Orbital AI Data Centers

SpaceX warns investors that its plans for orbital AI data centers may not achieve commercial viability due to significant technical complexities.

SUI Network Set to Revolutionize Finance with Upcoming Upgrades

The SUI network is set to launch significant upgrades that could transform global finance.

RedotPay Launches SUI and USDC Integration for Real-World Transactions

RedotPay has launched an integration of SUI and USDC, allowing users to utilize digital assets for real-world transactions.

Ethereum Staking Activity Surges to New Heights

Ethereum staking has reached unprecedented levels as both retail and institutional investors increase their participation.

Analyst Predicts Potential XRP Rally Amid Market Trends

Crypto analyst Egrag Crypto predicts that XRP could rally to between $9 and $13, indicating a macro uptrend despite recent market fluctuations.

XRP Adoption Grows with New Partnerships in Japan

XRP adoption in Japan is enhanced through new partnerships between SBI and Tobu Top Tours, allowing users to buy and spend XRP with loyalty points at 5 million merchants.

Be the first to know about crypto news every day
Get crypto analysis, news and updates right to your inbox! Sign up here so you don’t miss a single newsletter