LD Capital, Antalpha Ventures, Highblock Unite for Hong Kong’s First ETF Liquidity Fund
In a groundbreaking collaboration, major blockchain venture capital firms in Asia have come together to launch Hong Kong’s first-ever ETF liquidity fund. LD Capital, Antalpha Ventures (a subsidiary of Bitmain), and Highblock have announced the establishment of a fund valued at 1 billion HKD, equivalent to approximately $128 million.
The primary objective of the fund is to provide liquidity, streamline capital flows, and mitigate risks associated with liquidity fluctuations and transactional volatility within Hong Kong’s ETF market. This move is aimed at addressing existing market inefficiencies and offering a stable foundation for investors navigating the crypto landscape.
Enhancing Hong Kong’s ETF Market
Hong Kong recently began trading crypto ETFs on April 30, following much anticipation since their introduction in the United States. Unlike the U.S., Hong Kong approved the launch of both spot Bitcoin and Ethereum ETFs, providing investors with a diversified opportunity to participate in the growing crypto market.
Now, LD Capital, Antalpha Ventures, and Highblock have joined forces to introduce the inaugural liquidity fund. The fund will offer market-making services to ETF investors, protecting them from the volatility of the crypto market. With the fund now operational, crypto ETF traders in Hong Kong can expect smoother transactions and increased market stability. Investors will be able to enter and exit their ETF positions without sudden price fluctuations.
The companies involved believe that the rollout of the fund represents a significant advancement in enhancing the financial infrastructure of Hong Kong’s ETF market. By fostering investor confidence and market stability, this initiative sets the stage for further growth and development in the region’s financial landscape.
In contrast to their U.S. counterparts, the Hong Kong ETF market experienced a slow start, with underwhelming inflows. As of May 6, the crypto ETFs had accumulated approximately 4,400 Bitcoin, totaling around $276 million in assets under management.
Wintermute to Contribute to ETF Growth in Hong Kong
Shortly after the introduction of the crypto liquidity fund, Wintermute, a London-based crypto company, announced that it would provide liquidity for the Hong Kong-listed spot Bitcoin and Ethereum ETFs.
In a statement released on May 7, Wintermute revealed its partnership with OSL Digital Securities and HashKey HK Exchange, both of which serve as sub-custodians of crypto trading platforms in Hong Kong.
Wintermute’s collaboration with these entities aims to streamline the buying, selling, and delivery of underlying assets (Bitcoin and Ethereum) for both firms.
By ensuring a seamless creation and redemption process for the ETFs, Wintermute is reinforcing its commitment to enhancing market efficiency and accessibility. The company views this collaboration as part of its global expansion strategy to explore the Asian market.
The collaboration between LD Capital, Antalpha Ventures, and Highblock, along with Wintermute’s contribution, signals a significant development in Hong Kong’s ETF market, paving the way for increased investor participation and market stability.
Source: [Coinspeaker](https://www.coinspeaker.com/ld-capital-hong-kong-etf-liquidity-fund/)
