Bloomberg analyst deems approval of Hong Kong spot ETF
According to Bloomberg analyst Eric Balchunas, the recent news regarding the approval of Hong Kong spot ETFs is significant. Although the spot ETF has been approved, it has yet to be launched. The listing is expected to take place next week. However, Balchunas noted that compared to BlackRock, all the issuers are relatively small players in the market.
The Hong Kong spot Bitcoin ETF ecosystem is not as liquid as that of the United States. This means that there may be spreads and discounts. Consequently, spot ETF fees in Hong Kong will be higher, ranging from 1% to 2%, compared to the United States.
Balchunas explained that these factors will ultimately benefit Bitcoin as the cryptocurrency industry will have more investment opportunities.
On April 15, several management companies announced that they had received permission from regulators to launch spot ETFs for Bitcoin and Ethereum in Hong Kong. Unlike in the United States, where similar funds were only launched for Bitcoin in January, Hong Kong companies were simultaneously approved to launch funds for the two largest crypto assets.
China Asset Management, a major Chinese asset management company, stated that its Hong Kong unit has received approval from the Hong Kong Securities and Futures Commission (SFC) to provide retail asset management services related to spot crypto ETFs. Additionally, Harvest Global Investments has also received in-principle approval from the SFC for two funds.
In related news, Bitcoin dominance has reached its highest level of 2021, driven by the introduction of ETFs. Stay updated by following us on Google News.
