Martyparty&martypartymusicBreaking: Chinese #Bitcoin and #Ethereum ETFs launch 9:30am tomorrow - press conference summary is out - here is the translation.👀☝️
Highlights:
- Expected larger first day than USA
- In kind redemptions and subscriptions
- Wallet to wallet transfers
- Mainland Chinese investors are not allowed to invest in Hong Kong’s cryptocurrency spot ETFs
- Hong Kong issuers DO NOT CARE if US Sec declares Ethereum a security.
In this press briefing, Zhu Haokang, head of digital asset management and family wealth of China Asset Management (Hong Kong), and Wayne Huang, head of OSL ETF and custody business, answered the following questions.
Q: What does China Asset Management (Hong Kong) think about the scale of capital inflows on the first day of listing of Hong Kong cryptocurrency ETFs tomorrow?
Zhu Haokang : I am very confident that the trading scale of the Hong Kong virtual asset spot ETF on the first day of listing can exceed the trading scale of the first day in the United States. The issuance scale of the 10 US Bitcoin spot ETF issuers on the first day of January 10 this year was 125 million. US dollar, Hong Kong will exceed US$125 million, and China is confident to become the ETF issuer with the largest trading volume on the first day among the three issuers. The details can be revealed to everyone at 9:30 tomorrow morning.
Wayne Huang : There will be an announcement from the Hong Kong Stock Exchange at 9:30 tomorrow morning, but OSL has indeed completed its first day of raising funds on OSL today with two funds (including ChinaAMC and another fund that cooperates with us). Judging from the numbers, the transactions are indeed far greater than the capital inflow of the U.S. Bitcoin spot ETF on its first day of trading.
Q: What is the difference between Spot China Bitcoin ETF and Spot China Ethereum ETF and other ETFs?
Zhu Haokang : The first difference is that compared with the US spot Bitcoin ETF, we have spot and physical subscriptions and redemptions, which the US spot Bitcoin ETF does not have.
In addition, there are two differences between ChinaAMC's products and the other two: ChinaAMC's Hong Kong spot ETF is the only ETF with Hong Kong dollar, US dollar and RMB counters. The second is that in addition to listed shares, we have unlisted shares. These two points are not available in the other two companies.
Q: In addition to Hong Kong, where else have investors participated in the Hong Kong virtual asset spot ETF?
Zhu Haokang : Thanks to the physical subscription method, first of all, investors include Bitcoin mines, etc. They can use their Bitcoin holdings to directly purchase virtual asset spot ETFs in Hong Kong. Secondly, in countries and regions that have not yet issued ETFs outside of Hong Kong, such as Singapore and the Middle East, we have also come into contact with a large number of investors who are extremely interested. In addition, although the current spot Bitcoin ETF market in the United States is very large, compared with the United States, Hong Kong uses cash and physical subscriptions and is open for trading during Asian trading hours, which will still attract many American investors. Finally, several family offices in Asia and overseas are also very interested in spot crypto ETFs.
Q: Is there currently only one securities firm, Victory Securities, qualified to conduct relevant transactions in physical subscriptions?
Wayne Huang : Not only Victory Securities can do physical subscription, but also Huaying Securities with the support of OSL. Currently, there are three securities firms that can do physical subscription, and there will be more follow-up later. Therefore, after the ETF is listed tomorrow, many brokers will follow up, and it is possible that more brokers will participate in the entire ecosystem of virtual asset ETFs in May.
Q: What are the specific operations for physical purchase?
Wayne Huang : Physical subscription is a pioneering initiative for Hong Kong ETFs that is different from US ETFs. First, the brokerage firm needs to upgrade its No. 1 license to be able to handle virtual asset transactions. Investors can transfer their coins to OSL through this brokerage firm, and then finally transfer their equity back to OSL. Transfer it to the fund's custody account and complete the entire process of physical subscription.
Q: What is OSL’s anti-money laundering process in physical subscription? Is it acceptable for the counterparty to be the wallet of the other exchange?
Wayne Huang : First, investors must connect to OSL through a brokerage firm to open an account. We will perform a whitelist verification on the wallet that is about to transfer money to prove that this wallet is held and controlled by the investor. Second, we will verify the investment. The user's private wallet must be screened to see if there are any suspicious transactions in the wallet's past dozens of transactions on the chain. Only wallets that have passed the whitelist verification can allow him to transfer money.
Can a wallet be the wallet of another exchange? In theory, this can be done. If the anti-money laundering rules of the other exchange are consistent with the OSL rules, we can accept the other party's transfer of coins, but we need the other exchange to provide certain customer information.
Q: Can Hong Kong’s cryptocurrency spot ETFs be open to mainland investors? Or will there be a possibility of opening it up to mainland investors in the future?
Zhu Haokang : Currently, mainland Chinese investors are not allowed to invest in Hong Kong’s cryptocurrency spot ETFs. Hong Kong’s qualified investors, institutional investors, retail investors, and international investors that meet the regulations can all invest in cryptocurrency spot ETFs. For details, you can consult brokers and sales channels, and continue to pay attention to whether there are corresponding regulatory adjustments or the introduction of a specific regulatory framework in the future.
Q: Hong Kong’s Ethereum spot ETF is the first in the world, but if the United States finally determines that “Ethereum” is a security, will it affect Hong Kong’s Ethereum spot ETF?
Wayne Huang : Probably not, because whether the United States defines Ethereum as a security does not affect the independent decision-making of the Hong Kong Securities Regulatory Commission. The Hong Kong Securities Regulatory Commission has its own set of procedures for determining whether a certain virtual asset is a security and whether it can be opened to retail traders. It will not be affected by different opinions between various departments in the United States, or ultimately their own unilateral definition. to Hong Kong.
I also want to emphasize why Hong Kong can be the first in the world to launch an Ethereum spot ETF, rather than the United States? The regulation of cryptocurrency in the United States has multiple departments speaking out at the same time, or trying to regulate it. Who should supervise cryptocurrencies in Hong Kong has long been decided, namely the China Securities Regulatory Commission. The China Securities Regulatory Commission has given some very clear regulatory frameworks. Hong Kong has already had a clear definition of Ethereum. Ethereum It is not a security, but the first non-securities virtual asset to be included in Hong Kong supervision together with Bitcoin, and it is one of the two targets that can be provided to retail investors.
Q: Will Hong Kong launch other virtual asset ETFs?
Wayne Huang : Only Bitcoin and Ethereum for now. We have repeatedly discussed with the China Securities Regulatory Commission the process of how to list coins in compliance transactions in Hong Kong. Let me share briefly. First, we need the issuer of the virtual asset or ourselves to find a legal opinion stating whether the coin is a security or a non-security. And turn the legal opinion and our due diligence on the currency into a detailed research report and submit it to the China Securities Regulatory Commission. After final approval by the China Securities Regulatory Commission, it will be first opened to professional investors. When a certain level of liquidity is reached, it will be included. After a period of time within the scope of an index, we can apply to the China Securities Regulatory Commission to upgrade the currency to be available for retail trading.
https://s.foresightnews.pro/article/detail/59032
https://x.com/martypartymusic/status/1784964165557420075
