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- Hong Kong debuts Bitcoin and Ethereum spot ETFs today.
- Ethereum according to officials is not a security under Hong Kong laws.
According to reports, the spot Bitcoin (BTC) and Ethereum (ETH) Exchange-Traded Fund (ETF), which began as speculation commenced trading Today in Hong Kong. This development has established a new precedent for both BTC and ETH, as they aim for fresh all-time highs.
Bitcoin and Ethereum ETF Trading Begins in Hong Kong
A report from Wu Blockchain revealed that three Bitcoin and Ethereum spot ETFs in Hong Kong have officially started trading. Notably, the ETF is also open to non-Hong Kong residents as long as they satisfy local regulatory requirements such as completing customer due diligence.
ChinaAMC said its IOP (initial offering period) scale today is: HK$950 million for ChinaAMC HongKong Bitcoin ETF; HK$160 million for ChinaAMC Ethereum ETF, totaling approximately US$142 million. Bitcoin ETF is about 6x larger than Ethereum. https://t.co/9hgicVWsKc
— Wu Blockchain (@WuBlockchain) April 30, 2024
One of the ETF issuers, China Asset Management Co Ltd, a renowned asset management firm in Hong Kong disclosed that its Initial Offering Period (IOP) is HK950 million (about $121.4 million) for ChinaAMC Hong Kong Bitcoin ETF. On the other hand, HK160 million (about $20.4 million) is reserved for ChinaAMC Ethereum ETF.
On April 15, China Asset Management chose OSL Digital Securities as the first virtual asset trading and sub-custodian partner. Besides China Asset Management, Harvest Global Investments and Bosera Asset Management launched crypto ETFs through their Hong Kong subsidiaries on the Hong Kong Stock Exchange under the tickers HGI and BOS
Prior to the launch of the ETFs, Zhu Haokang, the head of China Asset Management, and Wayne Huang, the head of custody firm OSL Digital Securities both responded to questions on the new institutional investment products, while speaking at a press conference.
One notable question was whether the classification of Ethereum as a security in the United States would have any impact on Hong Kong. Huang responded in the negative, claiming that the United States’ designation of Ethereum as a security has no bearing on the Hong Kong Securities Regulatory Commission’s autonomous decision-making.
Additionally, he highlighted that the Hong Kong Securities and Futures Commission has its own set of processes for deciding whether certain digital assets are securities and if retail investors can trade them.
“Hong Kong has already had a clear definition of Ethereum,” Huang stated.
He went on to declare that “Ethereum is not a security.” According to him, Ethereum is one of the two assets, including Bitcoin, that can be provided to retail investors. As formerly reported by Crypto News Flash, the Ethereum Foundation was recently subpoenaed by the US Securities and Exchange Commission (SEC) to determine whether the asset is a security.
BTC and ETH Eye New All-Time High
Bitcoin and Ethereum have been exhibiting bullish signals following the commencement of their ETFs in Hong Kong. At the time of writing, Bitcoin is trading up 1.06% to $61,272, inching closer to its cycle high of $67,180. In the past 24 hours, the trading volume has increased by 40.7% to $30.8 billion.
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Per ETH, the cryptocurrency is trading at $3,003, with a 24-hour trading volume that has increased by 10.9% to $15 billion and a market cap of $ 368.8 billion. Overall, if investor appetite for both Bitcoin and Ethereum continues, the digital assets could see their price climbing to a new all-time high.
