Key Points
- Hong Kong Stock Exchange debuts Asia’s first spot Bitcoin and Ether exchange-traded funds (ETFs).
- The ETFs are available to qualified investors outside of Hong Kong, with certain restrictions for mainland China.
The Hong Kong Stock Exchange marked a significant milestone in the world of cryptocurrencies by launching Asia’s first spot Bitcoin and Ether ETFs.
ETF Listings
Hong Kong Exchanges and Clearing Ltd. listed six ETFs, including Bosera HashKey Bitcoin ETF, Bosera HashKey Ether ETF, ChinaAMC Bitcoin ETF, ChinaAMC Ether ETF, Harvest Bitcoin Spot ETF, and Harvest Ether Spot ETF.
These listings follow the approval of several spot Bitcoin and Ether ETFs managed by China Asset Management, Harvest Global, Bosera, and HashKey.
Brian Roberts, Head of Equities Product Development at the Hong Kong Exchanges and Clearing Ltd., highlighted the positive impact of these listings on the diversity and liquidity of the Hong Kong ETP market.
Investor Access and Unique Features
These spot crypto ETFs are accessible to qualified investors outside of Hong Kong. However, investors from mainland China still face restrictions.
A unique feature of these Hong Kong spot crypto products is their in-kind feature. Investors can buy the ETFs with Bitcoin or Ethereum and sell them for cash, or vice versa. This feature offers two-way investment flexibility.
Previously, Hong Kong listed three futures-based crypto ETFs. The interest in virtual asset ETFs has grown since these were first launched in late 2022.
The combined average daily turnover for the three crypto futures ETFs reached HK$51.3 million (about $6.5 million) in the first quarter of this year, up from HK$8.9 million a year earlier. These ETFs also reported HK$529 million in net inflows during the first quarter.
