Hong Kong has given the green light for the launch of the first Bitcoin and Ethereum exchange-traded funds (ETFs), marking a significant development in the region’s digital assets market. Managed by Harvest Global Investments, China Asset Management, Bosera Asset Management, and HashKey Capital, these ETFs are set to revolutionize Hong Kong’s position in the Asian digital assets landscape. HashKey Exchange, the largest licensed virtual asset exchange in Hong Kong, has already reported a trading volume of $4.8 billion, solidifying its position among the top 20 exchanges listed on Coingecko.
The approval of these ETFs has sparked a competitive pricing strategy among providers in Hong Kong, with analysts predicting a potential “fee war.” Harvest Global Investments, in a bid to gain a competitive edge, has decided to waive management fees for the first six months. This move has been highlighted by James Seyffart, a senior ETF analyst at Bloomberg Intelligence, who suggests that a fee war between issuers may ensue.
The cryptocurrency market has responded positively to the news of the ETF approvals. HashKey Exchange has already completed the first cryptocurrency subscription for the newly approved Bitcoin and Ethereum spot ETFs. These ETFs, which will commence trading on April 30, offer advantages such as cost and liquidity, as they allow for cryptocurrency redemptions without the immediate sale of underlying assets.
In the United States, the approval of Bitcoin ETFs has also generated significant market activity. On February 28, 2024, the trading turnover for U.S.-listed spot Bitcoin ETFs reached a record-breaking $2.4 billion in a single day. This trend has continued, with nine U.S.-listed spot Bitcoin ETFs consistently trading above $2 billion. BTC has experienced a 5.76% surge in the past week, with a current price of $64,356, according to Today’s Coin Market Cap.