TLDR:
- Three Asian-based ventures have launched Hong Kong’s first-ever ETF liquidity fund valued at $128 million.
- The liquidity fund aims to boost market activity for Hong Kong crypto ETFs, creating smoother trading and more efficient movement of capital within the market.
Article Summary:
Three Asian-based ventures, LD Capital, Antalpha Ventures, and Highblock, have come together to launch Hong Kong’s first-ever ETF liquidity fund worth $128 million. The aim of this fund is to enhance market activity for Hong Kong crypto ETFs, ensuring smoother trading and more efficient movement of capital within the market. ETF liquidity funds function as market makers, actively buying and selling shares of specific ETFs to create a smoother market and allow investors to enter or exit positions without facing significant price fluctuations. These funds play a crucial role in maintaining market flow and offering constant market-making services. The launch of this liquidity fund comes at a time when Hong Kong is striving to become a hub for digital assets, with the recent approval of several cryptocurrency ETFs by the Securities and Futures Commission (SFC). These new crypto ETFs have garnered $230 million in assets under management within their first week, with China Asset Management (China AMC) leading the way. The city’s new ETFs are expected to attract diverse investors, including Chinese wealth parked in the city and Asia-Pacific crypto exchanges and market makers, driving further market activity.
