Wintermute, a leading crypto trading firm based in London, has announced its collaboration with OSL Digital Securities and HashKey HK Exchange to serve as a liquidity provider for the newly launched Hong Kong-listed spot bitcoin and ether exchange-traded funds (ETFs). The partnership underscores Wintermute's commitment to expanding its market presence in the Asia region and facilitating greater access to digital assets for investors.

OSL Digital Securities and HashKey HK Exchange, acting as sub-custodians of virtual asset trading platforms supporting the operation of the ETFs, will benefit from Wintermute's expertise in providing liquidity for these innovative investment vehicles. Wintermute CEO Evgeny Gaevoy emphasized the significance of crypto ETFs in democratizing access to digital assets and attracting a broader spectrum of investors to the crypto space.

Gaevoy stated, "Crypto ETFs provide a means for investors at all levels to enter into the world of digital assets through a regulated and government-endorsed investment vehicle. [They] play a key role in bringing the next wave of investors into the crypto space, both institutional and retail … Increasing access to digital assets will play a critical function in further accelerating growth, and Wintermute is excited to play a key role in that process."

As a liquidity provider, Wintermute will facilitate the buying, selling, and delivery of the underlying assets of the ETFs, which include bitcoin (BTC) and ether (ETH). This partnership aims to streamline the creation and redemption process for the ETFs, ensuring seamless operations for investors.

Wintermute's collaboration with OSL and HashKey is part of its broader expansion strategy into the Asian market. Gaevoy expressed optimism about Hong Kong's role as a crypto-friendly jurisdiction in the Asia-Pacific region and anticipated similar developments in other countries in the near future.

Despite a relatively slow start compared to their U.S. counterparts, the three Hong Kong-listed bitcoin ETFs, launched on April 29, have demonstrated steady growth. As of the latest update, they have accumulated approximately 4,400 bitcoins, equivalent to roughly $276 million in assets under management. This partnership with Wintermute is expected to further enhance liquidity and market efficiency for these ETFs, contributing to their long-term success in the dynamic crypto landscape.