Hong Kong anticipates Bitcoin, Ethereum ETFs surpassing US in 1st-day trading volume

Hong
Kong
is
set
to
launch
new
Bitcoin
and
Ethereum
ETFs
tomorrow
at
9:30
a.m.
EDT,
with
an
expected
larger
initial
trading
volume
than
in
the
United
States.

“I
am
very
confident
that
the
trading
scale
of
the
Hong
Kong
virtual
asset
spot
ETF
on
the
first
day
of
listing
can
exceed
that
of
the
United
States,”

said
Zhu
Haokang,
head
of
digital
asset
management
and
family
wealth
at
Huaxia.

The
U.S.
saw
a
first-day
trading
volume
of
$125
million
across
ten

Bitcoin
spot
ETF
issuers
earlier
this
year,
a
figure
Hong
Kong
aims
to
surpass.

The
ETFs
will
feature
unique
elements
not
present
in
U.S.
counterparts,
such
as
in-kind
redemptions
and
subscriptions
and
the
ability
to
handle
transactions
in
multiple
currencies,
including
Hong
Kong
dollars,
U.S.
dollars,
and
RMB.
Moreover,
the
ETFs
will
enable
wallet-to-wallet
transfers,
enhancing
their
appeal
to
a
global
audience.

OSL
ETF
Project
Lead
Wayne
Huang
highlighted
the
robust

regulatory
framework
in
Hong
Kong
that
supports
these
initiatives.

“Hong
Kong
can
be
the
first
in
the
world
to
launch
an
Ethereum
spot
ETF,”
Huang
explained,
emphasizing
the
clear
and
established
guidelines
from
the
China
Securities
Regulatory
Commission
regarding
classifying
cryptocurrencies
like
Ethereum
(ETH)
as
non-securities.

Despite
advancements,
mainland
Chinese
investors
are
currently
excluded
from
participating
in
these
ETFs,
though
international,
institutional,
and
retail
investors
from

Hong
Kong
and
other
regions
are
eligible.

The
Hong
Kong
market’s
approach,
particularly
its
operational
processes,
such
as
physical
subscriptions
and
rigorous
anti-money
laundering
measures,
sets
a
new
benchmark
in
the

cryptocurrency
ETF
domain.

“Physical
subscription
is
a
pioneering
initiative
for
Hong
Kong
ETFs,”
said
Huang,
detailing
the
steps
required
for
investors
to
transfer
their
digital
assets
securely
through
approved
brokerage
firms.