Hong Kong unleashes its first spot Solana ETF

Here comes Hong Kong, making crypto history and probably making some hedge fund managers spill their green tea.

The city’s securities watchdog just gave the green light to ChinaAMC’s spot Solana ETF, the first of its kind to get the official thumbs-up in the region. Mark your calendars, trading kicks off on October 27.

Traded in three currencies

The Securities and Futures Commission signed off on this Solana ETF last week, turning what was once a pipe dream into a shiny new reality.

ChinaAMC is stepping in as the orchestrator, charging investors a modest 0.99% annual fee to join the party.

Behind the scenes, BOCI-Prudential Trustee Limited is watching over the coins, while OSL Digital Securities moonlights as both sub-custodian and the virtual asset trading platform. It’s like a well-oiled crypto machine designed to handle this digital beast.

What’s cooler? This ETF will be traded on the Hong Kong Stock Exchange, not just in one, but three currencies, Hong Kong dollars, Chinese yuan, and even good old U.S. dollars.

You’ll need to grab shares in lots of 100, so don’t just dip your toes, think proper swimmer style.

Crypto ETFs are marching on

Hong Kong’s big move is riding the wave of anticipation surrounding the U.S. Securities and Exchange Commission.

The world’s financial drama queen was expected to approve a bunch of spot Solana and altcoin ETFs by October 10, but a government shutdown had other plans.

While that unique American standoff drags on, Hong Kong’s flex sends a clear message, crypto ETFs are marching on, whether Uncle Sam’s office is open or not.

Solana has its limits

Last month, the SEC streamlined the whole process by introducing generic listing standards.

That’s tech-speak for ditching the need to file for approval on each individual token, opening the floodgates for more crypto ETF applications than you can shake a hardware wallet at.

JPMorgan analysts recently threw some cold water on Solana’s ETF party, predicting net inflows around $1.5 billion in the first year.

That’s about a seventh of what Ethereum ETFs raked in during their first lap on the track.

The analysts note this ratio mirrors Solana’s DeFi total value locked compared to Ethereum’s. Translation, Solana’s hype train has its limits.

So, Hong Kong gets first-mover bragging rights on the Solana spot ETF, and while the U.S. waits for its political gears to turn, the crypto world watches with popcorn in hand.