Hong Kong’s In-Kind ETFs Set To Launch On April 30

According to a HashKey spokesperson, Hong Kong will witness the launch of Bitcoin and Ethereum spot ETFs.planning to go live The move on April 30 heralds a new era in which the region positions itself as a global digital asset hub. One particularly notable feature is the structure of these ETFs. Unlike traditional cash-settled ETFs, these instruments are based on a spot trading approach, facilitating direct issuance and redemption of shares using the underlying Bitcoin or Ethereum.

According to crypto trading firm Wintermute, the spot approach will be more attractive to crypto natives, market makers and digital asset exchanges due to its high efficiency and arbitrage opportunities. In addition to closely tracking the actual market prices of Bitcoin and Ethereum, this physical mechanism also addresses concerns about market manipulation and excessive volatility, which is a point of contention between the US SEC and ETF issuers, among others. are doing.

Meanwhile, crypto enthusiasts in Hong Kong are allowed to own Ethereum ETFs. On the other hand, in the US, you are not allowed to own an ETH ETF or participate in an airdrop because it is protected by the SEC. How about that?

Hong Kong innovates as US balks

Following this news, market experts around the world are making comparisons with the ETF scene in the US market. Other than the approval of Bitcoin ETFs, there has not been much progress towards the approval of Ethereum ETFs. Various issuers, including Grayscale and BlackRock, are making moves regarding Ethereum ETFs. For example, Grayscale filed an application to convert the Ethereum Trust into an Ether ETF, and BlackRock filed an amendment to its 19b-4 ETH ETF application. However, the SEC deferred its decision regarding Grayscale and Franklin.

Hong Kong

Hong Kong’s latest launch also signals the growing integration of cryptocurrencies into the mainstream financial system and the increasing acceptance of digital currencies by institutional investors around the world. This action by Hong Kong could set a precedent for other financial centers in Asia and around the world, and could encourage further adoption and innovation in the cryptocurrency space.

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