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Hong Kong Stock Exchange Introduces Spot Bitcoin and Ethereum ETFs
The Hong Kong Stock Exchange has announced the launch of new spot Bitcoin and Ethereum exchange-traded funds (ETFs). This marks the introduction of the first spot virtual asset (VA) ETFs in Asia, as confirmed by Hong Kong Exchanges and Clearing Limited (HKEX).
Expanding Investment Choices in Virtual Assets
Investor interest in virtual asset ETFs has seen a significant rise since the introduction of VA Futures ETFs in late 2022. By the first quarter of 2024, the combined average daily turnover for the three VA Futures ETFs listed in Hong Kong surged to $51.3 million from $8.9 million the previous year. These ETFs also attracted $529 million in net inflows during the same period.
The range of exchange-traded products (ETPs) on the Hong Kong Stock Exchange has been growing, with ETFs and Leveraged and Inverse Products (L&I Products) being among the fastest-expanding segments.
Enhancing ETP Ecosystem
Brian Roberts, HKEX Head of Equities Product Development, expressed excitement about the introduction of Spot VA ETFs in Hong Kong. He mentioned that this addition to HKEX’s ETP ecosystem provides investors with access to a new asset class. Roberts also highlighted that the listing of Asia’s first spot VA ETFs will further enhance product diversity and liquidity in the Hong Kong ETP market.
Competition in Bitcoin and Ethereum ETFs
Issuers of the spot Bitcoin and Ethereum ETFs include China Asset Management Co. (China AMC), Harvest Global Investments, Bosera International, and HashKey Capital. This move is expected to spark a new round of ETF competition in the region.
In 2023 and the first quarter of 2024, HKEX introduced 16 new ETFs, bringing the total offerings to 179. The exchange plans to diversify its product offerings and strengthen its position in the global market.
Roberts expressed the exchange’s commitment to working closely with stakeholders to introduce more products to the international marketplace.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
