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Pioneering Broker in Hong Kong Supporting In-kind Subscriptions and Margin Financing
HONG KONG, April 25, 2024 /PRNewswire/ -- Eddid Securities and Futures Limited ("ESFL" or the "Company"), subsidiary of Eddid Financial (the "Group"), has been appointed as a participating dealer for the first batch of all six Spot Bitcoin and Spot Ether Exchange Traded Funds (collectively, "ETFs") in Hong Kong. ESFL will collaborate with SFC-licensed virtual asset trading platforms ("VATP") to facilitate its clients in directly subscribing to and redeeming these ETFs using Bitcoin and Ether. ESFL is also among the first brokers in Hong Kong to offer margin financing services for these ETFs, providing leverage against positions in virtual asset ("VA") spot ETFs to enhance clients' purchasing power.
Earlier this month, the Securities and Futures Commission of Hong Kong ("SFC") conditionally approved the issuance of three global-first Spot Ether ETFs and three Asian-first Spot Bitcoin ETFs by Harvest Global, China AMC (Hong Kong), Bosera Asset Management and HashKey Capital. ESFL will be one of the few participating dealers for this entire batch of ETFs, assisting with their creation and redemption in the global primary market and to ensure smooth transactions.
Hong Kong is the first global market to support in-kind subscriptions and redemptions for VA spot ETFs. In addition to cash, investors can also utilize VA tokens (i.e., Bitcoin and Ether) for subscriptions and redemptions, significantly enhancing market flexibility and liquidity. ESFL will be among the first brokers in Hong Kong to offer such in-kind subscriptions and redemptions services. Clients with securities and VA accounts at the Company, as well as an account with a designated VATP, can easily conduct in-kind subscriptions and redemptions using Bitcoin and Ether.
ESFL is also one of the first brokers in Hong Kong to offer margin financing services for VA spot ETFs, enabling clients to leverage their positions in these ETFs, increasing capital efficiency and flexibility in their investment portfolios, thereby maximizing trading opportunities.
The Eddid Financial Research Team will provide investors with a series of professional research reports on the VA-related products, dissecting global market trends and analyzing various investment tool. Reports on the upcoming Spot Bitcoin and Spot Ether ETFs have already been published and are available on the Group's research APP, E-Research. These reports are accessible for free without registration.
The appointment as a participating dealer for the entire batch of Spot Bitcoin and Spot Ether ETFs, along with the introduction of various innovative services, reaffirm the Group's leading position in the development of the VA market both regionally and globally. This highlights the Group's competitive advantage and commitment to industry innovation. The Group will continue to collaborate with the industry to energize market development, break boundaries, and further solidify Hong Kong's position as a leading digital asset hub in the region.
