We’ve already experienced the market impact of the US SEC’s spot Bitcoin ETF approval. Now spot Bitcoin and Ethereum ETFs are debuting on the other side of the world. It remains to be seen how Hong Kong’s cryptocurrency ETFs will perform. Some experts expect them to surpass volumes on the first day of trading in the US, with their unique features attracting global investors.

Will Hong Kong cryptocurrency ETFs overtake the US on the first trading day?

Tomorrow is an important day for the cryptocurrency market. This is because Hong Kong’s first cryptocurrency ETFs are making their debut. On the eve of this historic launch, China Asset Management (Hong Kong) held a detailed briefing discussing the expected market impact and distinctive features of these new investment products. The press conference by Zhu Haokang, head of digital asset management, and Wayne Huang, head of OSL ETF and custody business, highlighted the possibility of significant capital inflows that could exceed those generated by similar launches in the US. Cryptocurrency reporter WuBlockchain shared the development:

The Hong Kong ETF issuer has expressed confidence that the scale of issuance of the HK cryptocurrency spot ETF on the first day of listing tomorrow will exceed the US first day (US$125 million). Many investors in Singapore, the Middle East and elsewhere are very interested in crypto subscription.

Expected market performance

Zhu is confident that the first day trading volume of Hong Kong virtual asset spot ETFs will exceed the first US$125 million of the US spot Bitcoin ETFs launched in January. Huang also noted that first-day fundraising indicated stronger-than-expected trading volumes. Such an optimistic attitude highlights the Hong Kong financial market’s growing interest and belief in facilitating innovative financial products such as cryptocurrency ETFs.

What makes Hong Kong’s cryptocurrency ETFs different

The upcoming Spot China Bitcoin ETF and Spot China Ethereum ETF have some features not seen in other markets. Zhu Haokang pointed out that these ETFs are the only ETFs that provide spot and physical subscriptions and redemptions not offered in the US. They are the only ETFs with Hong Kong dollar, US dollar and RMB-denominated counters. Meanwhile, ChinaAMC’s competitors only offer investments in listed shares. However, ChinaAMC offers both listed and unlisted shares. This gives investors more choice.

Interest in these ETFs has been evident among investors from different regions. Bitcoin miners and family offices in the Middle East and Asia are particularly interested. The physical subscription method has attracted a number of investors. This global appeal is likely due to the fact that ETFs are available during trading hours in Asia. For investors, this brings a new type of trading. Especially for US investors looking to diversify their trading times and tactics.