As Hong Kong prepares for the launch of its inaugural spot Bitcoin and Ethereum ETFs, local media reported on April 29 that expectations are high for the initial trading volumes to surpass those seen during similar launches in the US.

Huaxia Fund Management (Hong Kong) and digital asset service provider OSL are leading the launch of these ETFs, scheduled to commence trading on the Hong Kong Stock Exchange on April 30.

During a press briefing on the eve of the launch, Zhu Haokang, Huaxia's head of digital assets, expressed strong confidence in the ETFs' potential, anticipating that trading volume could exceed the $125 million recorded on the first day by spot Bitcoin ETFs launched in the US in January.

Zhu highlighted the robust pre-launch interest in the funds, further fueled by their provision of options for both cash and physical redemptions, a feature not available in the US market. He stated, "We anticipate setting a new record for a crypto ETF debut in Hong Kong."

Meanwhile, Wayne Huang from OSL emphasized the operational preparedness, noting significant funds mobilized in anticipation of the launch. He indicated that pre-market transactions indicate strong demand expected to continue into the first day of official trading.

These ETFs, the first in Asia to offer spot trading of Bitcoin and Ethereum directly through an exchange, aim to attract both local and international investors with more flexible investment mechanisms compared to their US counterparts.

The launch is considered pivotal for Hong Kong's digital assets market, positioning the city as a leading global financial hub in the growing sector of digital assets. Huaxia and OSL highlighted the regulatory clarity and innovative trading features as key factors expected to drive success and appeal to a diverse investor base, including those from regions without existing crypto ETFs, such as Singapore and the Middle East.

However, some analysts recently forecasted that Hong Kong-based Bitcoin ETFs are unlikely to see more than $1 billion in total inflows during the first year, considering the market size and restrictions barring mainland Chinese investors from participation.