Hong Kong to Launch Spot Bitcoin and Ethereum ETFs on April 30

Hong Kong is set to become Asia’s first financial hub to allow the trading of cryptocurrency-based exchange-traded funds (ETFs), with the first batch of spot Bitcoin and Ether ETFs officially approved to start trading on April 30. The move marks a significant development in the city’s drive to become a digital asset hub, and is expected to attract a cumulative $1 billion in assets under management within the first year or two.

The Hong Kong Securities and Futures Commission (SFC) has given the green light to six crypto-based spot ETFs, which will allow investors to wager on the price of Bitcoin and Ether without having to buy them directly. The ETFs will be offered by three asset managers – China Asset Management, Harvest Global, and Bosera – and will be traded on the Hong Kong Stock Exchange.

Unlike in the US, where spot Bitcoin ETFs are classified as “cash-only,” the Hong Kong-listed funds will be of the “in-kind” variety, allowing investors to create new ETF shares by using Bitcoin and Ether. This feature is expected to attract coin holders and potentially increase assets under management and trading volume for these products.

The launch of the first ETFs in Hong Kong could also lead to a potential fee war among issuers, with some already offering lower fees than expected. The development is seen as a positive step for the city’s fintech industry, as it positions itself as a digital asset hub and seeks to differentiate itself from other markets.