Despite questions about Ethereum’s legal status in the US, Hong Kong ETF issuers have stated that the crypto has been classified as a non-security in the region.
Hong Kong-listed spot Bitcoin and Ethereum exchange-traded funds (ETFs) are set to debut in a few minutes. In anticipation of the launch, Zhu Haokang, Digital Asset Management Director and Family Wealth Director at China Asset Management, is confident that the launch scale of Hong Kong’s virtual asset spot ETFs will exceed the US’s initial $125 million scale.
Note also that this is the first time we will get clean look at how popular Eth is relative to btc in ETF format. What % of the net flows do you think they will grab? I think 10% or less, James more optimistic. https://t.co/ZKggtAGQIH
— Eric Balchunas (@EricBalchunas) April 29, 2024
Previously, Balchunas said the launch’s impact will likely be minor compared to that of the US market, considering the nascent state of Hong Kong’s ETF market, which currently holds only $50 billion in assets, as well as other factors like fee structures and China investors’ restrictions.
However, he sees the Hong Kong-listed crypto ETFs as a long-term positive for Bitcoin adoption.
Bitcoin’s price has climbed over the past few hours. It’s currently trading at $64,000, up over 1.5% after dipping below $62,000 earlier today, according to CoinGecko.
Meanwhile, Ethereum is hovering around $3,200, down 1.4% in the last 24 hours.