Eddid Securities and Futures Limited has been appointed a participating dealer for the MicroBit Bitcoin and Gold Value ETF, a new Hong Kong-listed fund that combines Bitcoin and gold in a single portfolio and began trading on the Stock Exchange of Hong Kong’s Main Board on Aug. 26.
The ETF trades under the tickers 3002.HK and 9002.HK. Eddid’s appointment gives the fund a dealer able to process primary-market subscriptions and redemptions through both in-kind and cash arrangements, helping connect the ETF’s exchange-traded shares with its underlying Bitcoin and gold holdings.
The role places Eddid within the operational framework that supports ETF liquidity. Participating dealers can create new fund units when demand rises or redeem units when selling pressure builds, subject to the fund’s rules. That mechanism is designed to keep an ETF’s market price closer to the value of its portfolio rather than leaving it dependent solely on secondary-market trading.
A bitcoin-and-gold allocation in one listed fund
The MicroBit Bitcoin and Gold Value ETF is structured to hold exposure to Bitcoin alongside gold, with periodic portfolio rebalancing intended to maintain their respective target weights. The approach packages two assets with sharply different market histories into one exchange-traded vehicle.
Bitcoin’s price can move substantially over short periods, driven by liquidity conditions, derivatives positioning, policy developments and changing demand for digital assets. Gold is widely used in traditional portfolios as a store-of-value asset and has generally displayed different trading behavior from risk-sensitive technology and cryptocurrency markets. Combining the two does not remove risk, but it gives traders a product whose holdings are not concentrated in a single asset class.
The fund’s rebalancing process is central to that design. When Bitcoin rises or falls more sharply than gold, its share of the portfolio can diverge from the fund’s intended allocation. Periodic adjustments would bring the holdings back toward the stated targets, mechanically reducing an overweight position and adding to an underweight one.
That structure differs from a conventional spot Bitcoin ETF, where the portfolio tracks Bitcoin alone. It also differs from a gold ETF, whose value is tied principally to bullion prices. The MicroBit product asks traders to take a view on a managed mix of the two rather than on either asset in isolation.
Dealer role supports creations and redemptions
Eddid will provide both in-kind and in-cash subscription and redemption services for the ETF. In an in-kind transaction, eligible parties deliver or receive the relevant underlying assets, rather than using only cash. A cash process uses money for the creation or redemption of ETF units, with the fund or its service providers handling the associated asset transactions.
Offering both routes can be useful for different participants. Firms with the capacity to handle the underlying assets may prefer in-kind processes, while cash arrangements can simplify participation for institutions that do not want to directly manage Bitcoin or gold transfers as part of an ETF transaction.
The company said its responsibilities also include trading-related support associated with the fund’s creation and redemption process. Such work is less visible than an ETF’s exchange debut, but it is essential to the functioning of listed funds. A product with an effective primary-market process has a clearer route for supply to expand or contract as demand changes.
Hong Kong’s virtual-asset ETF market has increasingly relied on participating dealers and regulated intermediaries to operate these creation and redemption channels. The model applies traditional ETF market infrastructure to assets that require additional custody, valuation and settlement procedures.
Eddid extends its virtual-asset ETF activity
Eddid said it has previously served as a participating dealer for several Hong Kong spot virtual-asset ETFs, including products focused on Bitcoin, Ethereum, Solana and multi-asset themes. Those mandates have also involved in-kind and cash subscription and redemption mechanisms.
The latest appointment extends that work from single-token and thematic products into a fund combining a digital asset with a commodity. The difference is operational as well as investment-related: the ETF must maintain exposure across two underlying markets while following its stated rebalancing methodology.
Eddid Financial said its group operates in multiple regulated markets. It listed Hong Kong Securities and Futures Commission licences covering regulated activities types 1, 2, 3, 4, 5, 6 and 9. The group also cited participant status with the Stock Exchange of Hong Kong and Hong Kong Securities Clearing Company, using OTP-C broker numbers 0974 and 0977.
Those permissions and memberships are relevant to a participating dealer role because ETF creation and redemption sits at the intersection of securities dealing, fund distribution, exchange trading and settlement. The exact responsibilities of a dealer depend on the fund’s offering documents and operating arrangements, but the role generally requires the ability to manage transactions efficiently across those systems.
A different route to cryptocurrency exposure
The MicroBit Bitcoin and Gold Value ETF arrives as listed products continue to give Hong Kong traders more ways to gain exposure to virtual assets without directly holding tokens in personal wallets. Its mixed-asset construction may appeal to those seeking Bitcoin participation while avoiding a portfolio tied entirely to cryptocurrency price movements.
The product should not be treated as a fixed hedge against Bitcoin volatility. Gold and Bitcoin can both decline, and their relationship can change across market cycles. Rebalancing can control the portfolio’s weights, but it cannot guarantee positive returns or protect against losses in either underlying market.
Its practical appeal will likely depend on execution, liquidity and whether the ETF can trade close to its underlying net asset value. Eddid’s participating-dealer appointment is part of the infrastructure intended to support those conditions as the bitcoin-and-gold fund begins its first days of trading in Hong Kong.
For deeper context on pairing digital assets with bullion, explore our guide on Gold vs Bitcoin and portfolio impact.
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