Hong Kong is preparing to introduce Bitcoin and Ethereum spot ETFs tomorrow, with one of the companies behind the ETFs making bold predictions. The issuing company anticipates that the ETFs' issuance scale will range from $200 million to $300 million, surpassing the initial US launch scale of $125 million.
Furthermore, the issuer foresees a potential final market size of at least US$2-3 billion, which is a drastic difference from the $500 million estimate put forth by US analysts.
The issuer clarified that the initial issuance size pertains to the Initial Offering Period (IOP) before listing, not the influx of capital on the first day.
Despite Asia having a high number of crypto users, the ban on digital assets in mainland China may limit the investor base. Nonetheless, the approval of ETFs designates Hong Kong as the first financial hub in Asia to acknowledge cryptocurrency products as mainstream investment tools. These products have received regulatory approval from Hong Kong's Securities and Futures Commission.
Just recently, the US launched its first Bitcoin ETF, leading to approximately $12 billion in net inflows and contributing to a surge in Bitcoin's price. Now, Hong Kong is following suit. Tomorrow, the Hong Kong counterparts of China Asset Management, Harvest Fund Management, and Bosera Asset Management, in collaboration with local cryptocurrency company Hashkey, will debut these ETFs.
*This does not serve as investment advice.
