Hong Kong debuts Bitcoin and Ethereum ETFs
04/30/2024 16:52Hong Kong's first spot Bitcoin ETFs rise on first trading day as Ether ETFs drop.
Hong Kong launched its first six spot Bitcoin and Ethereum exchange-traded funds (ETFs) on Tuesday.
The three, spot bitcoin ETFs by China AMC, Harvest and Bosera all closed the day in green, with Bosera leading with 1.8%.
All three Ether ETFs fell by the end of the trading day in Hong Kong, with China AMC’s Ether ETF leading the losses at 0.77%.
The ETFs offer investors the option for both cash and physical redemptions, a feature that is anticipated to contribute to their success.
Hong Kong’s crypto ETF debut follows the launch of similar Bitcoin-based products in the U.S. in January this year.
The U.S. market is awaiting the Securities and Exchange Commission’s (SEC) decision on the applications for nine spot Ethereum ETFs, which are reportedly likely to be rejected next month.
The SEC is investigating whether Ether, the native cryptocurrency of the Ethereum blockchain, is a security.
Last week, Consensys, an Ethereum development firm, filed a lawsuit against the U.S. SEC to challenge the agency’s stance on Ethereum.
Court documents suggest that the regulator has been investigating Ethereum’s status as a security since at least 2018.
“Hong Kong has already had a clear definition of Ethereum,” said Wayne Huang, head of ETF at OSL, in a press conference on Monday.
“It is not a security, but the first non-securities virtual asset to be included in Hong Kong supervision together with Bitcoin, and it is one of the two targets that can be provided to retail investors.”