On Monday, April 15, 2024, Hong Kong regulators approved the long-awaited launch of spot ETFs (Exchange Traded Funds) for both Bitcoin and Ethereum, following approval in the United States. Recently, on April 17, 2024, Bloomberg ETF expert Eric Balchunas made a post on X (previously Twitter) stating that Mainland China investors won’t be able to buy these launched ETFs.
Mainland China Investors won’t buy spot BTC and ETH ETF
However, Eric also highlighted that there are other ways these investors could try, such as less popular channels, which might also get blocked. Rebecca Sin’s note highlights the struggles faced by investors dealing with changing regulations in the crypto world.
Whereas retail investors could potentially access these ETFs using a $50,000 remittance quota, this option isn’t widely used. Institutional investors also face hurdles, as the QDII quota is unlikely to be approved for virtual asset ETFs without clear guidance, as Eric added in his post.
However, the management fees for these new ETFs could be around 1-2%, with CSOP’s Bitcoin Futures ETF and Ether Futures ETF charging 2% in management fees plus an estimated 2% in additional charges, while Samsung’s Bitcoin Futures ETF charges 0.95%. Following this post,
Eric made another post on X, where he highlights that Hong Kong’s spot Bitcoin and Ethereum ETFs could attract up to $1 billion in assets, but their success depends on how quickly the infrastructure and ecosystem improve. Currently, the Asia-Pacific region has Bitcoin ETFs managing $250 million in assets across Hong Kong and Australia. CSOP’s (Company Option Share Plan) Bitcoin Futures ETF (3066 HK) is the largest in Hong Kong, launched in late 2022 with $121 million in assets.
Whereas, Bosera Asset Management, Harvest International, and ChinaAMC will be the first to offer both spot Bitcoin and Ether products through ETFs. Bosera manages six ETFs with $40 million in assets, ChinaAMC has 15 ETFs with $3.6 billion, and Harvest has three ETFs with $10 million. Overall, Hong Kong’s ETF market has $51 billion in assets under management.
Bitcoin and Ethereum price after ETF approval in Hong Kong
Despite the approval of spot Bitcoin and Ethereum ETFs in Hong Kong, both cryptocurrencies do not experience any upside momentum. Currently, Bitcoin is trading near the $61,800 level, and in the last 24 hours, it experienced nearly 1% of downside momentum., Ethereum is trading near the $3,000 level, and in the last 24 hours, it experienced 2% downside momentum.
On Monday, April 15, 2024, Hong Kong regulators approved the long-awaited launch of spot ETFs (Exchange Traded Funds) for both Bitcoin and Ethereum, following approval in the United States. Recently, on April 17, 2024, Bloomberg ETF expert Eric Balchunas made a post on X (previously Twitter) stating that Mainland China investors won’t be able to […] Read MoreNews, Bitcoin, China, Hong Kong
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