In a turning point for the crypto industry of Asia, the Hong Kong crypto ETFs have started trading in exchanges after earlier approvals, with industry insiders hailing the move.
In mid-April, authorities in Hong Kong had approved a few spot Bitcoin ETFs. Some spot ether ETFs had also received the green signal. Subsequently, on April 30, the Hong Kong crypto ETFs made their debut and started trading on exchanges. Although their opening day trading volumes were relatively lower than their US counterparts, they have created a stir in Asia’s crypto space.
In the US, for instance, the spot Bitcoin ETFs were responsible for a big rally in the crypto market. There are also speculations for spot Ether ETFs in the US, but there haven’t been confirmations. Meanwhile, three Chinese asset management firms have launched the Hong Kong crypto ETFs.
The decision by Hong Kong to approve these ETFs puts them a notch higher above other global crypto hubs. Along with Hong Kong, cities like Singapore and Dubai have attractive propositions for the crypto sector. With time, these crypto ETFs could see a steady rise in inflows as more Asian investors start investing in crypto.
Tongli Han, CEO of Harvest Global Investments, one of the firms backing the ETFs, was bullish on their move. He claimed the ETFs could have access to a market double the size of the US.
Moreover, Brian Roberts from the Hong Kong Stock Exchange said in an official press release, “The introduction of Spot VA ETFs in Hong Kong is the latest exciting addition to HKEX’s diverse and vibrant ETP ecosystem, providing investors with access to a new asset class.”
In the days ahead, analysts, experts, and investors may closely monitor the growing demand for these exchange-traded products.
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