CDS Crypto News Bitcoin and Ether ETFs Emerge in Hong Kong: Three Chinese Firms Lead the Charge
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Bitcoin and Ether ETFs Emerge in Hong Kong: Three Chinese Firms Lead the Charge

The launch of spot price ETFs in Hong Kong sparks optimism for Chinese investors seeking crypto investment opportunities, with many local investors eager to integrate these ETFs into their portfolios, making Hong Kong the first Asian market to approve these widely sought-after funds.

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Bitcoin and Ether ETFs Emerge in Hong Kong: Three Chinese Firms Lead the Charge

Crypto News- Investors were eagerly eyeing the debut of six spot price Bitcoin and Ether exchange-traded funds (ETFs) in Hong Kong this Tuesday. However, unlike the fervor seen in the US earlier this year, where Bitcoin ETFs attracted massive investments, the Hong Kong launch faced a subdued market atmosphere.

Amidst concerns over rising US interest rates and geopolitical tensions in the Middle East, digital assets experienced a hefty $435 million outflow last week, marking the largest since March, according to CoinShares.

Bitcoin and Ether ETFs Emerge in Hong Kong: Three Chinese Firms Lead the Charge

The Hong Kong ETFs had a modest start, with a total trading volume of $12 million on the first day, significantly lower than the $4.6 billion seen during the US spot Bitcoin ETF launch in January.

Gary Tiu, executive director at OSL, a Hong Kong-based digital assets firm, commented, “The enthusiastic response from investors regarding both BTC and ETH ETFs reflects a deep-seated optimism about the potential of these products to enhance the financial landscape.”

Despite the initial lukewarm reception, local investors are showing interest, with nearly 77% indicating their intention to include spot Bitcoin and Ether ETFs in their portfolios, according to a recent survey by OSL.

However, the real intrigue lies in whether mainland Chinese investors will follow suit. The three issuers behind the ETFs, China Asset Management, Bosera Capital, and Harvest Global, all have ties to mainland China, raising hopes for access to Bitcoin and Ether investments.

Chinese Executives Express Hope for Future Crypto Investment Despite Regulatory Barriers

While the current regulations in mainland China prohibit crypto trading, executives from Harvest Global and China Asset Management expressed hopes for future participation from Chinese investors. Yimei Li, CEO of China Asset Management, told Bloomberg News, “We hope Chinese investors will be able to participate in the future,” emphasizing the potential for renminbi holders seeking alternative investments.

However, analysts at Bloomberg Intelligence remain skeptical, suggesting that official access to the ETFs for mainland investors remains unlikely. Moreover, Hong Kong’s crypto futures ETFs are also inaccessible to mainland investors.

Nonetheless, the enthusiasm from Hong Kong investors persists. The spot ETFs complement the existing virtual asset futures ETFs launched in late 2022. In the first quarter of 2024, these futures ETFs experienced a surge in turnover, averaging $6.6 million daily, up from $1.1 million a year earlier, with net inflows of $68 million.

As Asian nations contemplate allowing access to Bitcoin ETFs, the future trajectory of crypto investments in the region remains uncertain.

Bitcoin and Ether ETFs Emerge in Hong Kong: Three Chinese Firms Lead the Charge

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