Hong Kong Vies With US in Bitcoin ETF Market After Crypto’s Revival

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Hong Kong Nouvelles

Bloomberg,China Asset Management,Digital Asset

(Bloomberg) -- A batch of exchange-traded funds investing directly in crypto debuted in Hong Kong on Tuesday, heralding potential competition for US Bitcoin ...

-- A batch of exchange-traded funds investing directly in crypto debuted in Hong Kong on Tuesday, heralding potential competition for US Bitcoin products whose popularity stoked a record rally in the digital asset.Harvest Global Investments Ltd., the local unit of China Asset Management, and a partnership between HashKey Capital Ltd. and Bosera Asset Management Co. each listed Bitcoin and Ether ETFs in the city.

The launch of the ETFs “opens the door for a lot of RMB holders” seeking alternative investments, China Asset Management’s Chief Executive Officer Yimei Li said in a Bloomberg Television interview. Others have cautioned that expected demand must be calibrated in line with Hong Kong’s smaller financial sector. The city already allows crypto-futures based ETFs but their total assets of about $164 million are a fraction of the $2.3 billion ProShares Bitcoin Strategy ETF, a derivatives-based product in the US.

The market collapse two years ago exposed risky practices and fraud, triggering a spate of bankruptcies and searing criticism that still hangs over the industry. An alleged fraud at the JPEX crypto exchange roiled Hong Kong last year. Investors will likely scour incoming data from issuers to gauge net inflows for the Hong Kong vehicles. The equivalent figures for the US funds sometimes led to swings in crypto prices as demand waxed and waned.

 

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