Yahya 
Hong Kong has made a substantial contribution towards its goal of being a digital asset hub by setting up its first ETF liquidity fund with an equivalent of HK$1 billion (approximately: US$128 million). LD Capital, Antalpha Ventures, and Highblock have designated this enterprise as a catalyst in this evolution process, aiming to increase liquidity and stability within the city’s booming ETP market.
This follows the recent announcement from the Securities and Futures Commission, which on April 30, 2023, approved six of the HKSE’s ETFs, a significant development. Added to this portfolio are Bitcoin and Ethereum ETFs, which include ChinaAMC, Harvest Global, and Bosera International. Unlike the previous days, when the MCODE traded in a relatively smaller market with a capitalization of around $100,000, the first-day volume spiked to $99 million HKD. This observation demonstrated the increasing participation of investors in the digital asset ecosystem.
The fund that fills the role of market makers will play a very important role in the process of ensuring the seamless transactions of these ETFs. Through this, the fund can facilitate both the buying and selling of these ETF portfolios, as well as transform the ETFs into always-acting markets. We put this mechanism in place to mitigate price spikes and wild rides that directly result from inflows or outflows to the investments. This, in turn, fosters a stable trading environment.
LD Capital is well-known for its experience in blockchain projects at the investment stage, while Antalpha, developed by the strong Bitmain in the design of equipment for mining digital assets, provides in-depth expertise and industry know-how. To complete these, Highblock Limited, together with its trading know-how and the Hong Kong digital asset operating license, provides secure and quality trading abilities.
Analysts predict that the strategic cooperation between ERhere ETF and the security firm will boost investor confidence, forming a protective barrier against illiquidity risks and laying the groundwork for Hong Kong to pursue a new chapter in the digital asset landscape.