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Wintermute to Provide Liquidity for HK Crypto ETFs as HK$1B Liquidity Fund Launches

Liquidity for Hong Kong's new crypto ETFs is being supported by Wintermute as well as a HK$1bn fund established by Asian VCs

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Market maker Wintermute is providing liquidity to OSL and HashKey for Hong Kong's new Bitcoin and Ethereum ETFs whilst crypto venture firms launch a liquidity fund for the same products.

The algorithmic trading firm announced today that its move is an attempt to “foster Wintermute’s presence in the Asia crypto markets.”

OSL and HashKey are both sub-custodians for Hong Kong's crypto ETFs, which were debuted at the end of last month.

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“ETFs play a key role in bringing the next wave of investors into the crypto space, both institutional and retail, and without companies like Wintermute providing liquidity, this would not be possible,” Evgeny Gaevoy, CEO of Wintermute, said in the statement.

“Hong Kong has established itself as a leading advocate for crypto in the APAC region, and we are hopeful that other countries will follow their lead in the near future.”

Meanwhile, LD Capital, Antalpha Ventures, and Highblock have announced the launch of a HK$1 billion (US$128 million) liquidity fund for Hong Kong ETFs.

The liquidity fund will provide market-making services for these ETFs, serving as a buyer and seller to establish continued trading interest. This should reduce price volatility and fluctuations, improve capital flow, and thereby reduce risk.

LD Capital offers its blockchain investment expertise, Antalpha Ventures brings industry knowledge, and Highblock leverages its quantitative trading for digital asset operations experience.

Earlier this week, Tiger Broke launched digital asset trading services in Hong Kong. Professional investors can now trade 18 cryptocurrencies as well as stocks, futures, US Treasury bonds and Hong Kong's new Bitcoin ETFs. Such investors must have an investment portfolio valued at more than 8 million HKD and corporate entities with assets exceeding 40 million HKD.

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