Bloomberg analyst Eric Balchunas recently discussed the approval of Hong Kong spot ETFs. While the spot ETF has been approved, it has not yet been launched. The launch is expected to take place next week, with all issuers being smaller players compared to BlackRock.

The Hong Kong spot Bitcoin ETF ecosystem is considered less liquid than that of the U.S., leading to spreads and discounts. Consequently, spot ETF fees in Hong Kong are expected to be higher, ranging from 1% to 2%.

According to Balchunas, these factors will be beneficial for Bitcoin as they provide more investment opportunities within the cryptocurrency industry. He mentioned that in the long term, improvements such as increased liquidity, tighter spreads, lower fees, and involvement of larger issuers could occur. However, in the short to medium term, moderate expectations are more realistic.

On April 15, several management companies in Hong Kong received regulatory approval to launch spot ETFs for Bitcoin and Ethereum. Unlike the U.S., where similar funds were launched only for Bitcoin in January, Hong Kong companies were authorized to launch funds for both major cryptocurrencies simultaneously.

China Asset Management, a major Chinese asset management company, reported that its Hong Kong unit received approval from the Hong Kong Securities and Futures Commission (SFC) to offer retail asset management services related to spot crypto ETFs. Additionally, two funds from Harvest Global Investments have received in-principle approval from the SFC.

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