The spot exchange-traded funds will be denominated in the United States dollar, Hong Kong dollar, and Chinese yuan.
Hong Kong spot Bitcoin (BTC) and Ether (ETH) exchange-traded funds (ETFs) will be remarkably different from their U.S. counterparts as the city’s regulator greenlit them for an April 30 launch.
According to a report by one of the issuers, ChinaAMC, its spot Bitcoin and Ether ETFs will track the performance of the Chicago Mercantile Exchange’s (CME) crypto indexes. Redemptions will be available in both fiat money and crypto funds. In addition, ChinaAMC’s crypto ETFs will be denominated in three currencies: the U.S. dollar, Hong Kong dollar, and Chinese yuan. Investment asset manager BOCI-Prudential and crypto exchange OSL will act as the custodians for the ETFs.
The aforementioned two firms will also custody spot Bitcoin and Ether ETF assets for issuer Harvest Global. BOCI and OSL “effectively solves problems such as excessive margin requirements, price premiums caused by missing short positions, and roll losses, thereby more accurately reflecting the real-time value of Bitcoin and Ethereum,” said Harvest Global staff in a statement.