Hong Kong's Bitcoin and Ethereum ETFs Expect $300 Million in Inflows.

Six new spot-crypto ETFs focused on #Bitcoin and #Ethereum have launched on the Hong Kong Stock Exchange. Issuers expect a total inflow of approximately $300 million into these funds on the first day. These new ETFs have the potential to compete with popular Bitcoin products in the United States.

Harvest Global Investments Ltd., the local unit of China Asset Management, HashKey Capital Ltd. and Bosera Asset Management (International) Co. are in a partnership that led to the listing of these new products in Hong Kong on Tuesday.

Hong Kong ETFs Could See $300 Million in First-Day Inflows

BlackRock Inc. in the USA. Spot Bitcoin ETFs, launched in January by major issuers such as Fidelity Investments and Fidelity Investments, have generated a record $52 billion in assets so far.

Bloomberg Intelligence analyst Rebecca Sin predicts that Bitcoin and Ethereum funds in Hong Kong could raise around $1 billion in the next two years.

However, Harvest Global's CEO, Han Tongli, thinks this estimate is too conservative, stating that financial products in Hong Kong are adopted by investors in both the West and the East, while the United States appeals more to Western investors. states.

A first-day inflow of $300 million is expected for six new spot Bitcoin ETFs recently launched in Hong Kong.

The capital attracted by these funds comes from sources such as Chinese wealth in the city and active crypto exchanges and market makers in the Asia Pacific region.

Crypto trading is banned in mainland China, leaving these new funds outside the scope of a program that gives Chinese investors access to Hong Kong ETFs. This raises the question of whether the program can be expanded in the future.

ETFs in Hong Kong, unlike funds in the US, adopt an in-kind subscription and redemption mechanism rather than a cash redemption model. This system allows underlying assets to be exchanged directly for fund units.
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