As Hong Kong prepares for the first spot launch of a Bitcoin and Ethereum ETF, expectations are soaring that initial trading volume will surpass those seen during a similar launch in the United States, local media reported on April 29.
Huaxia Fund Management (Hong Kong), together with digital asset service provider OSL, is leading the launch of the ETF, which is scheduled to be listed on the Hong Kong Stock Exchange on April 30.
At a press briefing held the day before the launch, Huaxia’s head of digital assets, Zhu Haokang, expressed strong confidence in the ETF’s potential, saying he expected the Bitcoin ETF to surpass the daily trading volume of $125 million recorded in spot at launch. I expected that I could. America in January.
Zhu said the fund had seen strong interest prior to its launch, which was further boosted by the ETF offering both cash and physical redemption options, which are not available in the U.S. market. additionally,
Zhu said:
“We expect to set a new record for cryptocurrency ETF debut in Hong Kong.”
meantime,
OSL’s Wayne Huang detailed operational readiness, highlighting that significant funding has already been mobilized in anticipation of launch. He added that pre-market trading suggests strong demand that is expected to continue through the first day of official trading.
The ETF, which is the first in Asia to offer spot trading of Bitcoin and Ethereum directly through an exchange, aims to attract both domestic and foreign investors by providing a more flexible investment mechanism compared to the United States.
The launch is seen as a pivotal moment for Hong Kong’s digital asset market, establishing Hong Kong as a leading global financial hub for the burgeoning digital asset sector. Both Huaxia and OSL highlighted the regulatory clarity and innovative trading features of their products as key factors expected to ensure success and interest from a diverse investor base, including investors in regions without existing cryptocurrency ETFs, such as Singapore and the Middle East.
Meanwhile, some analysts have recently predicted that the Hong Kong-based Bitcoin ETF is unlikely to see total inflows exceed $1 billion during its first year, based on the size of the market and the fact that mainland Chinese investors are not permitted to participate. them.