HONG KONG, Monday, May 6, 2024 – Hong Kong has launched Asia’s first spot Bitcoin and Ethereum exchange-traded funds (ETFs) on Tuesday, April 30, 2024, HKEX has announced. 1
Six new ETFs, issued by China Asset Management (Hong Kong) Limited, Bosera Funds, and Harvest Global Investments, allow investors to gain exposure to Bitcoin and Ethereum prices without directly purchasing the cryptocurrencies.
One report said that it was trading 14 funds.
Spot ETFs hold the underlying assets, in this case, Bitcoin and Ethereum, directly. This contrasts with futures-based ETFs, which track the futures contracts for the assets and may not perfectly reflect their spot prices.
The launch follows months of regulatory scrutiny and approval by Hong Kong’s Securities and Futures Commission (SFC). The SFC established a framework specifically for these ETFs, ensuring investor protection and market stability.
The debut of these ETFs was met with initial enthusiasm, with some experiencing price increases in early trading.
However, industry experts anticipate that these funds will attract a different investor profile compared to similar launches in the United States.
ETF issuers expressed confidence that the products will enjoy considerable success in the region.
According to Zhu Haokang, head of digital asset management firm China Asset Management, Hong Kong’s launch day is anticipated to surpass the US market. 2
During a press briefing on April 29, he remarked that he was confident that the initial listing scale of Hong Kong’s virtual asset spot ETF (more than US$125 million) could exceed the issuance scale on the first day in the United States.
Wayne Huang, head of custody firm OSL ETF, echoed this sentiment, observing on the inaugural fundraising day, “Judging from the numbers, the transactions are indeed far greater than the capital inflow of the U.S. Bitcoin spot ETF on its first day of trading.” 3
- Hong Kong: https://www.hkex.com.hk/News/News-Release/2024/240430news?sc_lang=en[↩]
- Hong Kong: https://twitter.com/GhostofWhitman/status/1785074124378816777[↩]
- Hong Kong: https://cryptopotato.com/hong-kong-spot-bitcoin-ethereum-etfs-go-live-issuers-expect-huge-launch-day/[↩]
