“Game On: Hong Kong Virtual Asset ETF Landscape Shifting as Huaxia, Jiashi, and Boshi Giants Begin Silent Battle”

The direction of the wind in the Hong Kong spot virtual asset ETF market seems to be changing. According to the South China Morning Post, Harvest Global Investments, which previously launched Bitcoin and Ethereum spot ETFs in Hong Kong, is now considering allowing mainland Chinese investors to directly trade its own cryptocurrency ETF products through the Stock Connect program. Harvest Global Investments CEO Han Tongli stated that if everything goes smoothly in the next two years, the company does not rule out the possibility of applying to include its cryptocurrency spot ETF in the Stock Connect program. The Stock Connect program provides channels for Chinese investors to trade Hong Kong stocks and is divided into two categories: Hong Kong Stock Connect under the Shanghai-Hong Kong Stock Connect and Hong Kong Stock Connect under the Shenzhen-Hong Kong Stock Connect.
The battle between the three giants of virtual asset ETFs in Hong Kong, namely Harvest, Huaxia, and Bosera, has begun. In fact, due to doubts about Hong Kong’s commitment to virtual assets, many investors are still on the sidelines, which puts pressure on the trading volume of cryptocurrency spot ETFs. It is expected that the initial progress of these products will be slow, but it is believed that the Hong Kong market has greater potential because it is a more attractive “neutral” region in Asia. There is confidence that Hong Kong’s cryptocurrency ETFs can grow to twice the size of American products, but he did not mention when this milestone could be achieved. Han Tongli added that this depends on when Hong Kong can establish a complete virtual asset ecosystem, but Hong Kong has already “planted the seeds” by launching ETFs.
Although including cryptocurrency spot ETFs in the Stock Connect program will significantly boost market confidence and attract a large number of new investors, there are doubts about whether this plan can be realized, especially considering Beijing’s “comprehensive ban” on cryptocurrencies. Moreover, Bitcoin and Ethereum futures ETFs, which have been listed since 2022, have not yet been included in the Stock Connect program. Han Tongli also mentioned that the current goal of Harvest Global Investments is to strive to make the trading volume of its cryptocurrency spot ETFs rank first in Hong Kong by the end of this year, as the company is preparing to issue mortgage products based on these ETFs. Data shows that the first-day trading volume of Harvest Global Investments’ cryptocurrency spot ETFs ranked second among the three fund companies, with ChinaAMC ranking first.
What is the impact on the cryptocurrency market?
The first batch of Bitcoin and Ethereum spot ETF products applied by the Hong Kong subsidiaries of Harvest, Huaxia, and Bosera have been officially approved by the Hong Kong Securities and Futures Commission. This approval marks a solid step for Hong Kong in establishing an international virtual asset financial center and provides Asian investors with new investment options. The launch of these products may have the following impacts on the cryptocurrency market:
1. Increased liquidity: The listing of spot ETFs will allow more retail and institutional investors to participate in the investment of Bitcoin and Ethereum, which may increase the liquidity of these virtual assets.
2. Improved transparency and security: Since these ETF products are listed on traditional exchanges and managed by professional fund companies, investors can invest in Bitcoin and Ethereum in a regulated environment, which may improve market transparency and investment security.
3. Promoting price discovery: The physical redemption mechanism may impose more requirements on licensed virtual asset exchanges in Hong Kong, helping to better reflect the real-time value of Bitcoin and Ethereum and promote price discovery.
4. Stimulating market vitality: It is expected that the launch of these ETFs will attract more global funds into the Hong Kong and Asian virtual asset markets, stimulating the underlying vitality of the market.
On the other hand, the approval and listing of the first batch of virtual asset spot ETFs in Hong Kong may have the following impacts on the price of Bitcoin:
1. Increased demand: The listing of ETFs may attract more investors, especially those who wish to invest in Bitcoin through traditional financial channels. This increased demand may push up the price of Bitcoin.
2. Increased market confidence: The approval of ETFs as regulated investment products may enhance market confidence in Bitcoin as an investment asset, which may have a positive impact on the price.
3. Promoting price stability: Since ETFs allow for physical redemption, this may help closely link the price of Bitcoin to its actual market value, thereby promoting price stability.
In summary, the actual response of the cryptocurrency market may be influenced by various factors, including the global economic situation, regulatory policy changes, and market sentiment. Therefore, although the general trend of the impact of ETFs on the price of Bitcoin can be predicted, the specific extent and duration of the impact are still uncertain.
In addition, the approval of the first batch of spot Bitcoin ETFs in Hong Kong may increase the demand and inflow of funds from large US ETF issuers such as BlackRock, which may also have an impact on the price of Bitcoin. Frankly speaking, the launch of Hong Kong’s virtual asset spot ETFs may have a significant impact on the Bitcoin market, but the specific effects need to be observed through market dynamics. However, it should be noted that investing in cryptocurrencies carries risks, and market price fluctuations can be significant, so investors should make investment decisions with caution.
Overall, the approval of the first batch of cryptocurrency ETFs in Hong Kong may have a positive impact on the cryptocurrency market by providing a secure, compliant, and convenient investment channel, attracting more investors and driving the development of the industry. Of course, the actual market response still needs to be observed through market dynamics and investor behavior.
Tags:
ETF
Ethereum
Market
Bitcoin
Virtual assets
Hong Kong
Source link:
https://mp.weixin.qq.com/s/LTXsOZvxhq8Pk9zdTmDf5g
Note: The views expressed in this article only represent the author’s perspective and do not constitute investment advice.
Original link: https://www.bitpush.news/articles/6713317
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