Hong Kong anticipates Bitcoin, Ethereum ETFs surpassing US in 1st-day trading volume

Hong Kong is set to launch new Bitcoin and Ethereum ETFs at 9:30 a.m. (EDT) tomorrow, with initial trading volume expected to be larger than in the United States.

“I am quite confident that the transaction scale of the Hong Kong virtual asset spot ETF on the first day of listing can exceed the US,” said Zhu Haokang, head of digital asset management and family wealth at Huaxia.

The US saw first-day trading volume of $125 million among ten Bitcoin spot ETF issuers earlier this year, and Hong Kong is aiming to surpass that figure.

The ETFs will have unique elements not found in their U.S. counterparts, such as in-kind payments and subscriptions and the ability to trade in multiple currencies, including the Hong Kong dollar, US dollar and RMB. Moreover, ETFs will enable wallet-to-wallet transfers, increasing their appeal to a global audience.

Wayne Huang, OSL ETF Project Leader, highlighted the strong regulatory framework supporting these initiatives in Hong Kong.

“Hong Kong may be the first country in the world to launch an Ethereum spot ETF,” Huang said, highlighting the China Securities Regulatory Commission’s clear and established guidelines on the classification of cryptocurrencies such as Ethereum (ETH) as non-securities.

Despite the developments, mainland Chinese investors are currently barred from participating in these ETFs, although international, institutional and retail investors from Hong Kong and other regions are eligible.

The Hong Kong market’s approach, especially its operational processes such as physical subscriptions and anti-money laundering crackdowns, is setting a new benchmark in the cryptocurrency ETF space.

“Physical subscription is a pioneering initiative for Hong Kong ETFs,” Huang said, detailing the steps required for investors to securely transfer their digital assets through approved brokers.