Foreign media: Hong Kong spot crypto ETFs have different redemption methods from the United States, and China Asset Management has the largest asset management scale among the three issuers

PANews reported on April 29 that according to Cointelegraph, the media listed 6 things you need to know about the debut of Hong Kong's spot crypto ETF tomorrow.

1. The Hong Kong Stock Exchange already trades Bitcoin futures and other cryptocurrency contracts: As of April 29, the assets managed by all three futures crypto ETFs of the Hong Kong Stock Exchange were HK$1.3 billion (US$170 million).

2. All Hong Kong ETFs account for 0.6% of the US ETF market.

3. Hong Kong's spot cryptocurrency ETF will have at least one significant feature that is significantly different from such products in the United States, namely the ETF redemption method: Unlike the US spot Bitcoin ETF, the Hong Kong spot crypto ETF will be created in physical form, which means that when ETF intermediaries want to issue new ETF shares, they will use actual cryptocurrencies such as Bitcoin to provide funds to the issuer; in contrast, US spot Bitcoin ETF providers are currently only allowed to issue spot crypto ETFs created in cash, which means that intermediaries are not allowed to touch Bitcoin.

4. Hong Kong's spot Ethereum ETF is not the only such ETF launched globally: Canadian regulators approved the country's first Ethereum futures ETF in April 2021, making Canada one of the first countries in the world to launch such investment products.

5. Mainland Chinese investors will not be able to buy Hong Kong Bitcoin ETFs.

6. China Asset Management is the largest issuer by asset management scale: According to Bloomberg data, China Asset Management has 15 ETFs in Hong Kong, with total assets under management of US$3.6 billion; its parent company manages assets of US$55.7 billion; the other two issuers, Bosera and Harvest, manage US$40 million and US$16 million in assets under management in Hong Kong, respectively.