LD Capital, Antalpha Ventures, and Highblock have collaboratively launched Hong Kong’s inaugural ETF liquidity fund, valued at $1 billion HKD (approximately $128 million USD). The innovative fund is designed to offer market-making services to Hong Kong’s ETFs, intending to boost liquidity, streamline capital flow efficiency, and reduce the risks associated with liquidity fluctuations and transactional volatility.
The fund represents a fusion of expertise from three influential firms. LD Capital, known for its investments in primary and secondary blockchain ventures, manages a portfolio of over 300 blockchain companies. Antalpha Ventures, affiliated with Bitmain, a global leader in digital asset mining hardware, offers deep industry insights. Highblock Limited, led by former executives of major international digital asset trading platforms, brings over ten years of blockchain quantitative trading experience to the partnership. According to the announcement, the firm holds a license in Hong Kong for digital asset quantitative trading and provides specialized services in quantitative trading and portfolio management.
ETF Market Boost
The fund extends its market-making services to six ETFs approved by the Hong Kong Securities and Futures Commission. These include Bitcoin and Ethereum spot ETFs managed by ChinaAMC, Harvest Global, and Bosera International. These funds were introduced on April 30th with a total trading volume of $99.4 million HKD, reflecting a strong investor appetite and interest.
This strategic collaboration is a significant step in fortifying Hong Kong’s ETF market infrastructure. The liquidity fund aims to elevate investor confidence, strengthen market stability, and reinforce Hong Kong’s position as a hub of financial innovation, paving the way for future advancements in the region’s financial landscape.
