Hong Kong Approves In-Kind Bitcoin ETFs

Hong Kong has approved its first in-kind Bitcoin ETFs.
Hong Kong Approves In-Kind Bitcoin ETFs
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Key Takeaways

  • Hong Kong approves first in-kind Bitcoin and Ether ETFs.
  • In-kind ETFs expected to improve market Bitcoin liquidity and stability.
  • Launch dates for new ETFs are still to be confirmed.

On April 15, Hong Kong’s regulators approved the first spot Bitcoin and Ether ETFs, opting for an in-kind creation model rather than the cash-create model used in the U.S.

Innovative ETF models introduced

These ETFs, introduced by local units of Harvest, Bosera, and ChinaAMC, will soon launch, with Bosera collaborating with HashKey Capital.

The in-kind model allows issuance of new ETF shares using actual bitcoin.

Patrick Pan on market impact

OSL board chairman and CEO Patrick Pan Patrick Pan highlighted the benefits of the in-kind model, emphasizing its role in boosting liquidity and aligning with both digital and traditional asset management practices.

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