Just over a week ago, Hong Kong regulators approved the launch of spot Bitcoin and Ether exchange-traded funds (ETFs). However, latest reports can confirm that the newly approved crypto ETFs are set to hit the Hong Kong market as early as April 30.
The milestone comes after the United States Securities and Exchange Commission (SEC), in an exemplary way, approved similar launches and subsequent trading of several spot Bitcoin ETFs within its jurisdiction.
Following the approvals, institutional adoption soon surged, ultimately causing Bitcoin (BTC) to reach its all-time high of $73,700 in March.
Now that the Hong Kong Securities and Futures Commission (SFC) has followed suit, expectations are that these ETFs, once they go live, would bring similar fortunes to the local crypto market.
What to Expect from Hong Kong Spot Bitcoin and Ether ETFs
Without a doubt, ETF issuers are expected to be in an unspoken race to gain first mover advantage. Industry experts Eric Balchunas and James Seyffart from Bloomberg share the same sentiment following their prediction that a fee war is likely to ensue among the issuers. That is as they strive to gain the largest number of customers.
Interestingly, the Balchunas and Seyffart prediction might already be playing out. Harvest Fund, for instance, is planning to enter the market with a full fee waiver that will run for six months. Following the waiver period, it also plans to charge the lowest fee of 0.3%.

As pictured above, three major players in the market, ChinaAMC, Harvest Fund, and Bosera, come with various fees. However, it’s worth noting that the competitive fee structures of the Bitcoin ETFs are good for attracting investors, which also translates to higher assets under management (AUM).
Expert Predictions
According to Balchunas, the relatively lower fee levels are positive signs for the market. However, he also hinted that the spot ETFs might struggle to be at par with their U.S. counterparts. For clarity, those have already gone far ahead and have seen over $200 billion in trading volume since they launched in January.
Despite the challenges, however, Eric Balchunas has taken a rather optimistic approach to his projections and analysis of the potential inflows into this new market.
His earlier prediction estimated that these Hong Kong ETFs could rack up to $500 million in AUM within the first two years of going live. However, he has now doubled that figure, estimating up to $1 billion in AUM in the same two years.