Hong Kong’s Pioneering Crypto ETF Landscape: $230 Million AUM in the First Week
Hongji Feng
Last updated:
May 6, 2024 05:11 EDT
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1 min read
In a groundbreaking development, Hong Kong’s spot Bitcoin exchange-traded funds (ETFs) have amassed an impressive $230 million in assets under management (AUM) during their inaugural week. This remarkable achievement underscores the growing appetite for cryptocurrency investment products in the dynamic financial hub.
According to data released by the Hong Kong Stock Exchange, the total AUM of virtual asset spot ETFs, including both Bitcoin and Ethereum, reached a staggering $273 million, outpacing the $152 million AUM of virtual asset futures ETFs by a significant margin of nearly 80%.
Among the standout performers, China Asset Management Co. (China AMC)’s ETFs emerged as the clear leaders, securing $116 million for their Bitcoin ETF and $19 million for their Ethereum ETF. Bosera International and HashKey Capital’s Bitcoin ETF also accumulated a respectable $57 million AUM, while their Ethereum ETF secured $11.6 million. Harvest Global Investment’s Bitcoin ETF rounded out the top contenders with roughly $57 million under management and its Ethereum ETF securing $11.5 million.
The remarkable success of these three spot Bitcoin ETFs, collectively reaching $230 million in AUM, and the three Ethereum ETFs amassing approximately $43 million, underscores the growing investor confidence in Hong Kong’s crypto-asset ecosystem.
Sui Chung, CEO of CF Benchmarks, a Kraken subsidiary, has forecasted that despite a relatively slow start, crypto ETFs in Hong Kong are poised to rally and surpass $1 billion in assets under management by the end of 2024.
Hobeng “HB” Lim, BitGo’s Managing Director of the Asia-Pacific region, has shared his insights on the appeal of Hong Kong’s crypto ETF offerings, stating that some investors may prefer them over similar products in the US or Europe due to more favorable taxes and regulatory access.
While Hong Kong has established a comprehensive regulatory framework for virtual assets, Lim has highlighted the need for further improvements, such as a regulatory framework for independent virtual asset custodians and adjustments to the proposed regulations for over-the-counter (OTC) trading of virtual assets.
As the crypto landscape in Hong Kong continues to evolve, these pioneering spot Bitcoin and Ethereum ETFs have set the stage for a new era of institutional and retail investment in digital assets, positioning the city as a global hub for cryptocurrency-focused financial products.