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Hong Kong's six Bitcoin and Ethereum spot ETFs will begin trading on 4/30.

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Six Bitcoin and Ethereum spot ETFs in Hong Kong are set to officially launch on April 30. According to the latest analysis by Bloomberg, the issuance volume may reach $1 billion in the next two years. It is unlikely that southbound funds will be approved to enter by the Chinese government, which will affect the inflow of funds into the market. Issuers have also started a price war to attract customers.

China Huaxia Fund: Has obtained regulatory approval in Hong Kong and plans to issue Bitcoin and Ethereum spot ETFs.

Hong Kong Cryptocurrency Spot ETF to Launch on 4/30

In mid-April, Hong Kong officially approved Bitcoin and Ethereum spot ETFs from Huaxia Fund, CSOP Asset Management, and Bosera Fund.

According to The Block, citing Bloomberg analysts, Huaxia Fund Management Co. is the largest of the three issuers, managing over $55 billion in assets in Mainland China, over $3.6 billion in Hong Kong, and nearly 100 ETFs in total across both regions.

Bloomberg ETF analyst Rebecca Sin mentioned in a discussion on Wednesday that the Hong Kong regulatory authority decided to offer physically-backed funds partly to differentiate from the spot Bitcoin ETFs available in the U.S. She stated:

It caters to different people, as now everyone holding Bitcoin and Ethereum can convert them into ETFs.

Estimated Asset Size Around $1 Billion

During the Wednesday discussion, Rebecca Sin predicted that the Hong Kong cryptocurrency spot ETF would accumulate around $1 billion in assets under management in the first one to two years.

Prior to this, Bloomberg analyst Eric Balchunas estimated that the issuance would only reach $500 million, and the southbound funds are not likely to receive approval from the Chinese government, potentially leading to a negative impact as Chinese individuals holding Bitcoin may seek to cash out through the ETF.

Hong Kong Bitcoin ETF to become a channel for dumping goods? Bloomberg analyst predicts issuance of only five hundred million yuan, Chinese retail investors unable to enter

Another Bloomberg analyst, Jack Wang, who participated in the Wednesday discussion, also mentioned that the inability of mainland Chinese investors to participate would affect the amount of funds flowing into the Hong Kong cryptocurrency spot ETF, as mainland China prohibits investment in such products.

Will Spark Another Fee Battle

Bloomberg also compiled the expense ratios disclosed by current issuers, which are 0.30%, 0.6%, and 0.99%, lower than Bloomberg's previous expectations. Eric Balchunas believes this is a positive sign.