Bloomberg ETF Asia-Pacific Chief Analyst: Hong Kong's Bitcoin and Ethereum ETF AUM is expected to reach 1 billion US dollars

Bloomberg Industry Research ETF Asia Pacific Chief Analyst Xian Sujun stated that the asset management scale of Hong Kong's spot Bitcoin and Ethereum ETFs is expected to reach $1 billion. However, whether this goal can be achieved may depend on the speed of infrastructure and ecosystem improvements. The demand for ETFs from retail investors and institutions in Hong Kong is strong, both types of investors have shown interest in virtual assets. However, the innovative nature of these products means that it will take time for the infrastructure of virtual asset ETFs to mature. HashKey and OSL are the only two platforms approved for such transactions in Hong Kong so far. Once the ETF ecosystem develops, market competition is expected to intensify, capital flows may increase accordingly, pricing will become more accurate, spreads will narrow down, liquidity will enhance and fees are likely to decrease.