Cryptocurrency market maker Wintermute provides liquidity and supports Hong Kong’s newly launched Bitcoin and Ethereum exchange-traded funds (ETFs).
In a statement made available to CryptoNews, London-based Wintermute said it is providing liquidity to two licensed digital asset platforms in Hong Kong; OSL Digital Securities and HashKey HK Exchange.
Wintermute said that both OSL Digital Securities and HashKey will act as sub-custodians and virtual asset trading platforms to help launch and operate Hong Kong-listed ETFs.
“ETFs play a key role in attracting the next wave of investors to the cryptocurrency space, both institutional and retail, and without companies like Wintermute providing liquidity, this would not be possible,” – Evgeny Gaevoy, CEO of Wintermute, said in a statement.
“Increasing access to digital assets will play a key role in further accelerating growth, and Wintermute is excited to play a key role in this process,” Gaevoy added.
The role of a liquidity provider is to be a market broker or an institution that acts as a market maker in a selected asset class. Wintermute said that as a liquidity provider for ETFs, it will work with OSL Digital Securities and HashKey to buy, sell and deliver the said funds.
Asia’s first ETFs for virtual assets
In April, the Hong Kong Stock Exchange announced the launch of new ETFs for Bitcoin and Ethereum. In an official announcement made by Hong Kong Exchanges and Clearing Limited, the Bitcoin and Ethereum ETFs marked the introduction of Asia’s first virtual asset (VA) ETFs.
The products were listed by Harvest Global Investments, China Asset Management and Bosera Asset Management. On Monday, exchange-traded Bitcoin ETFs in Hong Kong secured $230 million in assets under management (AUM) in their inaugural week.
“Hong Kong has established itself as a leading advocate of cryptocurrencies in the APAC region, and we hope other countries will follow their example in the near future,” Gaevoy added.
