In
addition
to
the
higher
seed
money,
Zhu
Haokang
also
took
note
of
the
availability
of
in-kind
subscriptions
and
redemptions
as
well
as
the
regulatory
clarity
in
Hong
Kong
that
allowed
a
spot
ether
ETF
before
one
was
available
in
the
U.S.
Also
participating
in
the
briefing
was
Wayne
Huang,
head
of
ETF
and
custody
at
crypto
exchange
OSL.
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
initial
listing
scale
of
Hong
Kong’s
virtual
asset
spot
ETF
(more
than
US$125
million)
can
exceed
the
issuance
scale
on
the
first
day
of
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.
Huaxia
is
confident
that
it
will
become
the
largest
ETF
issuer
among
the
three
issuers.
The
details
will
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
Huaxia
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.
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.
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.
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.
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.
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.
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.
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.
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
Securities
Regulatory
Commission
to
upgrade
the
currency
to
be
traded
by
retail
investors.
But
so
far,
after
4
years
of
operation,
OSL
still
has
only
two
assets,
Bitcoin
and
Ethereum,
open
to
retail
investors
for
trading.
That
is
to
say,
for
the
time
being,
only
these
two
coins
meet
the
conditions
for
launching
ETFs.
,
but
we
have
been
discussing
and
studying
with
the
China
Securities
Regulatory
Commission.
Will
you
consider
launching
ETFs
such
as
inverse
leverage
of
virtual
assets?
Zhu
Haokang
:
ETF
itself
is
full
of
financial
attributes,
which
involve
the
innovation
of
many
financial
products.
We
have
also
seen
some
international
investment
banks
make
some
financial
innovations
and
develop
similar
derivatives
on
existing
US
products.
We
are
also
paying
close
attention
and
communicating
with
a
large
number
of
investment
banks
and
securities
firms.
To
give
a
simple
example,
the
Hong
Kong
Stock
Exchange
also
allows
ETFs
to
be
short-selling
and
even
margin
trading.
We
are
also
communicating
with
our
partners
to
create
more
income
and
more
innovation
in
financial
products
for
our
ETF
investors.
.
How
do
you
think
the
next
cryptocurrency
ETF
will
affect
the
price
of
cryptocurrency?
Zhu
Haokang
:
Based
on
the
analysis
of
various
factors,
we
believe
that
cryptocurrency
ETFs
will
be
beneficial
to
cryptocurrency
prices.
First,
Hong
Kong’s
crypto
spot
ETF
market
injects
more
liquidity
into
the
crypto
market.
Second,
accelerate
the
compliance
of
the
industry.
Third,
funding
channels
have
been
expanded.
Fourth,
investors
may
obtain
arbitrage
opportunities
between
ETF
prices
and
spot
prices,
allowing
more
market
makers
and
arbitrage
investors
to
actively
participate.
Fifth,
with
the
passage
of
our
crypto
spot
ETF,
trading
factors
in
traditional
markets
will
also
directly
affect
the
cryptocurrency
market.
Sixth
point,
we
believe
that
Hong
Kong’s
regulatory
framework
is
relatively
clear,
and
the
issuance
of
Bitcoin
and
Ethereum
ETF
products
provides
great
convenience.
Seventh
point,
we
believe
that
Hong
Kong,
as
an
international
financial
center,
will
attract
more
Chinese
investors
to
trade
during
Asian
time
periods,
improve
market
liquidity,
and
perform
better
than
similar
products
in
Europe
or
Canada.
Huaxia’s
rates
are
higher
than
those
of
the
other
two
Hong
Kong
companies.
Are
you
worried
about
lack
of
competitiveness?
Zhu
Haokang
:
I
think
everyone
is
more
concerned
about
the
fee
issue.
First
of
all,
the
fee
structure
of
China
Asset
Management
Hong
Kong
fully
follows
the
standards
of
thematic
and
complex
ETFs
listed
in
Hong
Kong.
You
can
refer
to
the
past
listed
cryptocurrency,
futures
ETFs
and
various
thematic
ETFs.
Charges.
Our
charges
are
lower
than
similar
charges.
Second,
our
products
provide
very
high
flexibility
in
trading
options,
not
only
supporting
listed
and
unlisted
shares,
but
also
supporting
three
types
of
over-the-counter
transactions
in
US
dollars,
Hong
Kong
dollars
and
RMB.
This
is
our
unique
advantage.
Thirdly,
the
complexity
and
innovation
of
our
products
determine
the
importance
of
our
risk
management
and
operational
stability.
