Analysts believe Bitcoin exchange-traded funds (ETFs) could see a significant upswing following their launch in Hong Kong due to the adoption of in-kind creation models.
Bloomberg senior ETF analyst Eric Balchunas further pointed out that Hong Kong’s adoption of an in-kind creation model for spot Bitcoin ETFs could potentially boost the assets under management (AUM) and the trading volume for ETF products in the rapidly expanding region.
Balchunas’s position was informed by a research note by Bloomberg ETF analyst Rebecca Sin, which suggested that the in-kind model would present an “opportunity for the market.”
According to Sin:
“Hong Kong is aiming for in-kind creation of the ETF, unlike the US, where the transaction is cash only — in the US, it’s cash in, Bitcoin ETF out, while Hong Kong aims for Bitcoin in, ETF out. This could be an opportunity for the market.”
Earlier in the year, Hong Kong authorities signaled their readiness to accept applications for spot crypto
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