jakiro
Jessy, Bitchain Vision Realm
Castrol International, Huaxia Fund (Hong Kong), and Boshi International’s three approved Bitcoin spot ETFs and Ethereum spot ETFs will be launched at the end of the month.This is of great significance to Hong Kong. Hong Kong dares to be the first. This is the first virtual currency spot ETF approved in Asia, and not only the Bitcoin spot ETF approved, but also ahead of the Ethereum spot ETF in the United StatesApproval process.
Earlier, Hong Kong has launched Bitcoin and Ethereum Futures ETF, and some asset management companies have also tried funds related to virtual assets.On December 22, 2023, the Hong Kong Securities Regulatory Commission issued the “Communication Letter of the Certified Fund for Virtual Assets of the CSRC”, which stated that the regulatory agency has prepared to accept other funds including virtual currency spot ETF.Application for recognition.
With less than four months, the products of three companies have been approved by the products. How is this efficiency made?What does the launch of virtual currency spot ETF mean for Hong Kong’s traditional finance?What details are the details of the virtual currency spot ETF worth the attention of investors?
Futures, funds, securities firms, asset management, traditional finance has already tried WEB3
Prior to the spot ETF, Hong Kong already had some attempts to combine virtual currencies and traditional financial markets.
In December 2022, Southern Dongying Asset Management Co., Ltd. launched the first batch of virtual asset ETFs in Asia: Southern Dongying Bitcoin Futures ETF (3066.HK), and Ether Etherbon Futures ETF (3068.HK) in Southern Dongying.And the official transaction of Hong Kong stocks was launched in the same month.The sub -fund is mainly invested in Bitcoin Futures of the Chicago Commercial Exchange (Chicornes).
In terms of net value performance of the fund, the Futures ETF product launched by the Southern Fund Hong Kong subsidiary Southern Dongying -FA South Bitcoin has soared in the background of the Hong Kong stock market in 2023 and the background of investors’ emotions.In 2023, the net value of Bitcoin, the South FA, rose 1.34 times. In the context of the net value of the fund, within the four months of the beginning of 2024, the yield of the FA South Bitcoin had exceeded 50%during the year.
In addition, the Bitcoin Futures ETF of South China is one of all ETFs in Hong Kong in 2023. The highest return rate is 35 million yuan, which is also the largest ETF.
In addition to high yields, the most critical indicator of ETF products is the turnover. The average daily turnover of Bitcoin in the FA Southern Bitcoin has remained nearly HK $ 30 million in the last month, and the level of turnover has been considerable.
In addition to South Dongying, Samsung Bitcoin Futures Active ETF was also launched in January 2023.
Most of the veteran brokerage companies have tried water -related business, and Paolo, chief strategic officer of VDX, revealed that before, the monthly transaction volume related to virtual currency related to Victory Securities reached 100 million yuan.
Some asset management companies from some currency circles have also made some attempts. For example, in 2021, the new fire management of Hong Kong established the first virtual currency fund with a compliance and active management strategy.Bitchain Visiting reporter, the virtual currency fund has a 55%income in 2023.
Under the haze of the “International Financial Center”, Hong Kong’s traditional finance needs to find a breakthrough in business growth.For the currency circle, compliance and embracing mainstream finance have also become a main development line in the blockchain industry in recent years.
However, whether it is a traditional finance or the original institution of the currency circle, it is not easy to do virtual currency spot ETF.
No experience can follow, you need to win a win -win cooperation
The root of the problem is that this is almost without experience.From the government, to the institution, they need to be continuously practiced and explored.
The spot ETFs of the three fund companies were approved this time, namely Kadshi International, Huaxia Fund (Hong Kong), and Boshi International.These three institutions are the pivotal brothers in the traditional financial field.
Markets close to Castrol told the Better chain reporter that two years ago, Castrol International established a virtual currency -related investment and research department, which only involved research at the time and no specific business.
After October 2022, after the Hong Kong government issued the “Policy Declaration on the Development of Virtual Assets in Hong Kong”, the departments related to Castrol International Virtual Currency no longer only did industry research.Related policies, laws and regulations, and follow -up policies in other countries will act at any time.
Markets close to Castrol said that after the release of the Policy Declaration on the Development of Virtual Assets in Hong Kong, Castrol International has always been in contact with relevant regulatory authorities.Castrol International is currently planning Hong Kong’s stable coin -related business.
Castrol International was the first to submit an application in January 2024 and became the first batch of approval institutions.The main reason for success is that it has been paying attention to the application of the spot ETF of Eurasia and Asia and the United States, and has a wealth of experience in distribution ETF.
Applicants need to submit a set of ETF issuance solutions to the Supervision Regulatory Commission. If users purchase, how to trade, risk control, investor protection, and how to do it.
There are two difficulties. One is how the plan is designed, especially how to apply for redemption. Most institutions will get stuck in this step, and the other is where the service providers involved in the process are found.
For service providers, Shengli Securities is currently participating in the securities dealers (PD) of these three Bitcoin spot ETF issuers, and it is also the only VA (virtual asset) ETF physical delivery broker in the market.
The ETFs issued by Huaxia Fund (Hong Kong) and Castrol International are deployed through cooperation with OSL Digital Securities Co., Ltd.Hashkey applied for ETF with Boshi Fund (International), and Hashkey participated in it as a custodian.
Taking Shengli Securities as an example, as the PD of the three ETF publishers, his role is to purchase and create and redeem ETF units in the product framework in ETF.
At the same time, customers can directly purchase ETFs through cryptocurrencies through Victory Securities.Shengli Securities is the only broker in Hong Kong that has achieved coins from coins. This process does not need to pass the exchange.At present, only a few brokers have successfully upgraded the 1 -license plate to virtual asset transactions, and the upgrade 1 license is the first step to provide the service.
Markets close to Castrol said that Castrol International was the first company in Hong Kong to run the spot ETF process, and the first company to submit the application to the Securities Regulatory Commission.Huaxia and Bo Shi borrowed Castrol’s application.Castas believes that this can be directly cooperated.After all, the compliance virtual currency business in Hong Kong is now a blue ocean, and cooperation can make the cake bigger.
According to Hong Kong’s qualification requirements for the issuance of spot ETF managers: 1. There are good regulatory compliance records; 2. At least one competent employee with experience in virtual assets and related product management experience; 3. Holding upgrade nine licenses.
Although there are as many as 2,000 asset management companies with the ninth category of Hong Kong, there are only more than a dozen licenses who have upgraded 9 cards.
In this case, cooperation can win -win.Entering Web3, or more accurate in the spot ETF, what everyone needs to do is to make the cake bigger and share results.
The largest market is still on the mainland
It is worth noting that compared with the Bitcoin spot ETF in the United States, Hong Kong has an additional channel for purchasing spot ETF shares on the exchange with virtual currency spot.
An anonymous Hong Kong securities industry employees told the Better Chain Realm reporter that this is because Hong Kong has licensed exchanges and opened up the channel.To the people in the industry, this is also a compliant entry and exit gold passage.
Chen Peiquan, Executive Chairman of Shengli Securities, believes that the use of real goods to subscribe without waiting for transactions between banks or traders, because the original fiat currency involves the action of buying VA for transactions, and the deadline for real goods is longer than that cash is longer than cash.EssenceTherefore, it can enjoy the advantage of time to subscribe with real goods.
In recent years, the decline of Hong Kong stocks has basically gone.As of the end of 2023, the total market value of Hong Kong stocks was about 31 trillion Hong Kong dollars.By 2023, Hong Kong stocks have fallen for four consecutive years. On the other hand, European and American funds have withdrawn, and liquidity shrinks.Even in 2023, Hong Kong was ridiculed as the “International Financial Center site”.
Some people think that Hong Kong stocks have entered a slow bear, because of “soil deterioration”.Hong Kong has gradually become a normal city in China, and foreign capital will leave the Hong Kong financial market.A specific example of the evacuation of foreign capital, such as the major pension fund of the US federal government announced that it will remove stock investment in China and Hong Kong among the $ 68 billion international funds.
Tony Luk, the investment director of the new fire management, said that after the Bitcoin spot ETF is launched, the single -day inflows are expected to be around 10 million to 20 million US dollars.Considering that the Hong Kong ETF market has a small scale and a limited turnover, it takes a certain period of time to inflow. The initial daily inflow will not be too large.The estimated volume of the spot ETF is around $ 10-20 billion.
At present, the overall scale of Hong Kong ETF is only $ 50 billion, and the Bitcoin ETF has a high limit on transaction costs.From this point of view, the $ 2 billion market in the Hong Kong market is a high scale.
At present, the scale of Bitcoin spot ETFs of the Brylee has exceeded 10 billion US dollars.The United States itself accounts for over 80%of the Bitcoin spot ETF market, ranking first, and the second Canada accounts for only 7%, with a specific amount of about 3 billion US dollars.If Hong Kong can reach 2 billion US dollars, it will also be ranked among the world.
Although the 2 billion yuan in the overall financial market of Hong Kong is considered a cup of water, hugging the Web3 is a government that is worthy of being encouraged to regain the active actions of Hong Kong’s financial industry, although the current Chinese residents cannot buy virtual currency spot ETFs.However, it is foreseeable that after the policy is continuously open, Mainland China will be the largest market for virtual currency ETFs.
Tony Luk told Bibi -Special Chain Realm reporter,If it can successfully connect the mainland market, it is expected that there will be some room for growth, but the growth rate also depends on policy progress, the scale of $ 50-10 billion may be reached.
At the moment when Hong Kong gradually becomes the abandonment of European and American capital, actively embracing the mainland market can truly revitalize the virtual currency spot ETF.Of course, this is not determined by Hong Kong.
