A spokesperson for HashKey, one of the few regulated crypto exchanges in Hong Kong, told Bloomberg that Bitcoin and Ether spot ETFs will be officially launched on April 30.

How will the interest be?

As it is known, Hong Kong approved forward Bitcoin and Ether ETFs 2 years ago. While a great interest is expected especially from China in spot ETFs, the figures are expected to lag far behind the USA. Rebecca Sin, one of Bloomberg’s ETF analysts, said she thinks ETFs could attract only $1 billion over a two-year period. In the USA, Bitcoin spot ETFs collected $56 billion in 3 months.

Asset-based ETFs instead of cash…

The interest that ETFs will receive will clearly reveal the power of Hong Kong in this sense and the interest of Far Eastern investors in Bitcoin (and Ether). ETFs in Hong Kong will have a different aspect than US ETFs. This situation, which is widely discussed in the USA, is related to whether fund payments are made in cash or the asset itself…

As it is known, ETFs in the USA are bought and sold on a cash basis. In other words, when an investor sells his Bitcoin spot ETF, he receives dollars. But in Hong Kong, ETFs will be replaced by that asset itself. So when there is a sale, payment will be made again with Bitcoin or Ether. Purchases can also be made with cash.

Speaking to Bloomberg, Evgeny Gaevoy, one of the founders of liquidity provider company Wintermute, said, “These ETFs with asset redemptions will of course be better for the crypto world. “It will also provide arbitrage opportunities,” he said.

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Source: https://uzmancoin.com/kripto-bitcoin-ether-hong-kong/

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