Key Points

Tomorrow, April 30, the launch of Bitcoin and Ethereum ETFs is expected in Hong Kong. The ETF issuer in Hong Kong expressed confidence that the size of ETF issuance will surpass the $125 million inflow seen on the first day of the US ETFs.

Hong Kong will introduce its initial batch of Bitcoin and Ethereum ETFs on April 30. This move follows the footsteps of the US, which saw the introduction of BTC ETFs earlier this year, showing significant success.

In the US, the ETFs had an inflow of $125 million, with a total trading volume of $4.6 billion on the first day.

The launch of these ETFs in Hong Kong brings hope to crypto investors in Asia, inspired by the success of the US-approved BTC ETFs.

ETF issuers in Hong Kong are very optimistic that the scale of ETF issuance on the first day of listing will surpass that of the US.

China AMC Limited conducted a press briefing named “Asia Premiere – Spot ChinaAMC Bitcoin ETF and Spot ChinaAMC Ethereum ETF,” revealing crucial details.

During this briefing, Zhu Haokang, the head of digital asset management and family wealth at China Asset Management (Hong Kong), and Wayne Huang, the head of OSL ETF and custody business, shared insights about the upcoming event in Hong Kong.

Predictions about the scale of capital inflows on day 1 of crypto ETF listing

Zhu Haokang expressed confidence in exceeding the trading scale of the US on the first day of listing the Hong Kong crypto ETFs. He emphasized that the US BTC ETF issuers achieved a $125 million issuance scale on the first day, January 10. China Asset Management expects to be the ETF issuer with the highest trading volume on day one.

Details regarding this prediction will be disclosed on the morning of April 30.

Wayne Huang mentioned that the Hong Kong Stock Exchange is expected to make an announcement. OSL has already completed its funding on the first day, with transactions surpassing the US Bitcoin ETF capital on the initial trading day. Haokang emphasized the distinction between the US and Hong Kong crypto products, mentioning spot and physical subscriptions and redemptions unique to Hong Kong. The latter encompasses Hong Kong dollar, US dollar, and RMB counters, making it different from other Hong Kong-based products.

WuBlockchain mentioned the strong interest from investors in Singapore, the Middle East, and other regions in crypto subscriptions. The US debate on Ethereum's security status does not impact Hong Kong, as Ethereum has long been defined there as not a security.

Currently, HKEX trades Bitcoin futures, with the debut of the CSOP Bitcoin Futures ETF and the CSOP ETH Futures ETF, both managed by CSOP Asset Management. The Samsung BTC Futures Active ETF was launched by Samsung Asset Management Hong Kong in January 2023. As of April 29, 2024, the futures crypto ETFs on HKEX hold 1.3 billion Hong Kong dollars ($170 million) in assets under management.

Bloomberg recently analyzed Hong Kong’s aspirations of becoming a digital asset hub, noting that the trading of BTC and ETH ETFs will test this ambition. An essential point to note is that Mainland China investors are restricted from buying Hong Kong Bitcoin ETFs because China prohibited crypto transactions years ago.