Hong Kong Likely To Allow In-Kind Creations for Spot Bitcoin ETFs: Bloomberg
Summary
The Hong Kong Securities and Futures Commission (SFC) is expected to permit in-kind creations and redemptions for spot bitcoin ETFs in Q2 2021. Chinese asset manager Harvest Global and Venture Smart Financial Holdings have applied for a spot bitcoin ETF after the SFC expressed readiness to consider such products. The SFC's approval of in-kind redemptions, where ETF shares can be exchanged for the underlying asset rather than cash, could be significant due to the size of the Asian crypto market. This could channel a substantial amount of money into 'approved' portfolio allocation, according to Noelle Acheson, author of the “Crypto is Macro Now” newsletter.
