Hong Kong’s securities regulatory body, SFC, has approved the launch of Bitcoin and Ethereum Exchange-traded funds offering investors a secure and regulated investment option starting from April 30th.
According to CryptoDaily, after months of deliberation and speculation Hong Kong regulatory body finally approved the ETFs for Bitcoin and Ethereum expected by experts to bring in over $25 Billion if its offers are opened to investors in mainland China.
The approval announcement from the SFC reads as follows
The Hong Kong ETFs slightly differ from that of the United States approved in early January by being an in-kind creation model, unlike the cash-only creation model in the United States.
This model allows the creation of new ETF shares using Bitcoin and Ethereum, potentially driving up assets under management (AUM) and trading volume for these products.
Thomas Zhu, head of digital assets at ChinaAMC emphasized the appeal of this in-kind model of ETFs
Hong Kong launching its Bitcoin and Ethereum ETFs means growing competition in the ETFs space. As more ETFs enter the market there is likely to be competition in offering the lowest fees for other investment products.
This competition could ultimately benefit investors, leading to more competitive pricing and improved product offerings.
These ETFs also bridge the gap between traditional finance and cryptocurrencies by offering investors a secure and regulated means to invest in digital assets.