Launch of the PandDuo Bitcoin ETF
In a recent development for Hong Kong’s financial market, the Bitcoin Exchange-Traded Fund (ETF) called “PandDuo Bitcoin ETF” (2818) was launched by the licensed digital asset management firm PandDuo. The ETF made its debut on the stock exchange yesterday, experiencing a significant uptick of over 13% during the trading day before settling at a final price of 7.98 Hong Kong dollars, marking an increase of 1.64% or an additional 0.129 Hong Kong dollars.
Future Plans for Ethereum ETF
The CEO and founder of PandDuo, Ren Junfei, has indicated ambitious plans to extend their offerings further into the cryptocurrency investment landscape. Notably, he announced the upcoming release of a physically-backed Ethereum ETF that will feature a pledge mechanism, aimed for rollout in Hong Kong’s market later this year. This product will not only hold Ethereum but also integrate an additional yield opportunity, distinguishing it from conventional spot-holding ETFs.
When questioned about the absence of a concurrent Ethereum ETF launch—unlike other providers—Ren clarified that their strategy involves the creation of an Ethereum ETF that incorporates a staking component, which ensures a more sophisticated approach to investor engagement.
The team is currently in talks with regulatory bodies regarding investor protections and the specific operational aspects, such as the processes of creation and redemption tied to the ETF offerings.
Operational Details of the Bitcoin ETF
The newly launched PandDuo Bitcoin ETF operates as a passive investment vehicle that directly holds Bitcoin, starting at a listing price of 7.8512 Hong Kong dollars per share, with a minimum purchase requirement of 100 shares, entailing an entry cost of around 786 Hong Kong dollars. Underpinning the ETF’s operations is a 1% management fee, while BOC International-HK Trust Limited assumes the roles of custodian and administrator, partnered with OSL Digital Securities Limited for Bitcoin custody services.
