Press conference with a ChinaAMC executive before the launch of Bitcoin and Ether ETFs in Hong Kong on Tuesday.

​Hong Kong’s first cryptocurrency spot ETF is set to launch tomorrow, with a higher seed money and regulatory clarity attracting investors. The ETF, managed by China Asset Management (Hong Kong), is expected to surpass the initial listing scale of US spot Bitcoin ETFs.

Zhu Haokang, head of ETF and custody at China Asset Management (Hong Kong), expressed confidence that the initial listing scale of Hong Kong’s virtual asset spot ETF will exceed the issuance scale of US spot Bitcoin ETFs on their first day of trading. The 10 US Bitcoin spot ETF issuers had a combined issuance scale of $125 million on January 10 this year.

Wayne Huang, head of ETF and custody at crypto exchange OSL, also shared that the transactions for the Hong Kong spot ETF have already exceeded the capital inflow of US spot Bitcoin ETFs on their first day of trading. OSL has completed its first day of raising funds for two funds, including the one with China Asset Management (Hong Kong).

The main difference between China Asset Management’s spot ETFs and others is the availability of spot and physical subscriptions and redemptions, which the US spot Bitcoin ETFs do not have. Additionally, China Asset Management’s Hong Kong spot ETF is the only one with Hong Kong dollar, US dollar, and RMB counters, as well as unlisted shares.

Investors in the Hong Kong virtual asset spot ETF include Bitcoin mines and investors from countries and regions where ETFs have not yet been issued, such as Singapore and the Middle East. The ETF’s use of cash and physical subscriptions, as well as its availability for trading during Asian trading hours, is expected to attract American investors as well. Several family offices in Asia and overseas have also shown interest in the spot crypto ETF.

Currently, Victory Securities is the only securities firm qualified to conduct transactions for the Hong Kong virtual asset spot ETF. However, China Asset Management (Hong Kong) is in talks with other securities firms to expand the availability of the ETF.

Disclaimer: This piece may reflect opinions of writers which are not held by 8V Exchange.