Hong Kong’s in-kind ETF creation could be a significant market opportunity: Analysts
Hong Kong aims to enable in-kind creations and redemptions for spot Bitcoin ETFs in the second quarter.
Hong Kong’s financial regulators aim to offer in-kind creation models for spot Bitcoin exchange-traded funds (ETFs).
This could be a significant market opportunity, which could considerably increase assets under management (AUM) and trading volume for Bitcoin ETF issuers in the region, according to a research note by Bloomberg ETF analyst Rebecca Sin, shared in a March 26 X post by Eric Balchunas:
Hong Kong’s approach is in contrast with the model of the U.S. Securities and Exchange Commission (SEC), which exclusively allows for cash creation models for spot Bitcoin ETFs.
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