Hong Kong Bitcoin ETF to trade until April 30: Report
The highly anticipated Hong Kong spot Bitcoin exchange-traded fund (ETF) is expected to launch by the end of April, according to various industry sources.
What’s new: 🇭 Hong Kong #Bitcoin ETF could start trading on April 30 and bring in $25 billion: Report
It’s just a matter of time 🚀 pic.twitter.com/Y1Xo4JVrO7
— Bitcoin Magazine (@BitcoinMagazine) April 17, 2024
Hong Kong’s Securities and Futures Commission (SFC) recently approved several fund managers to offer spot Bitcoin ETFs. Accordingly, OSL, a cryptocurrency infrastructure provider for select approved fund managers, has stated that it is targeting a Bitcoin ETF launch as early as the end of April.
Markus Thielen, founder of research firm 10x, also said the Bitcoin ETF could begin trading by April 30. The launch schedule is dependent on finalizing details with regulators.
Analysts predict that once listed, accessible funds could attract significant capital inflows. Singapore-based Matrixport expects mainland Chinese investors to pour up to $25 billion into Bitcoin ETFs in Hong Kong through its Southbound Stock Connect program.
Thielen echoed this sentiment, saying ETFs could generate $25 billion in revenue if they were fully accessible to Chinese investors. But he noted that China’s participation could take at least six months as regulations evolve.
Nonetheless, the ETF marks a milestone for Bitcoin adoption in Asia. They provide regulated exposure to Bitcoin, opening up the asset to a broader range of investors.
Additionally, the fund’s unique in-kind redemption feature makes it globally competitive. This allows you to exchange Bitcoin directly for ETF shares, increasing efficiency.
By approving the ETF, Hong Kong solidifies its position as an emerging Bitcoin hub. As demand grows, the city is quickly moving forward with licensing Bitcoin companies and products.
With Bitcoin’s next halving just days away, the timing of the ETF launch is perfect. Many predict that a supply shock event will push Bitcoin to new highs, benefiting the linked investment vehicle.
If successful, Hong Kong’s spot ETF could prompt other Asian jurisdictions to follow suit. The domino effect will increase regional participation and maturity in the Bitcoin market.
