Asia’s First Bitcoin and Ethereum ETFs Launched in Hong Kong

Hong Kong Stock Exchange Launches Spot Bitcoin and Ethereum ETFs

The Hong Kong Stock Exchange has announced the introduction of new spot Bitcoin and Ethereum exchange-traded funds (ETFs). This marks a significant development in the virtual asset investment landscape in Asia.

Expanding Investment Choices in Virtual Assets

Investor interest in virtual asset ETFs has been on the rise since the launch of VA Futures ETFs in late 2022. The recent introduction of spot Bitcoin and Ethereum ETFs is a response to this growing demand.

• The combined average daily turnover for the three VA Futures ETFs listed in Hong Kong surged to $51.3 million by the first quarter of 2024.
• These ETFs attracted $529 million in net inflows during the same period, indicating a strong investor appetite for virtual asset investments.

Expansion of Exchange-Traded Products on HKEX

The Hong Kong Stock Exchange’s range of exchange-traded products (ETPs) continues to expand rapidly. ETFs and Leveraged and Inverse Products (L&I Products) are among the fastest-growing segments in the market.

According to Brian Roberts, HKEX’s Head of Equities Product Development, the introduction of Spot VA ETFs in Hong Kong enhances the diversity and liquidity of the ETP market. This move provides investors with access to a new asset class and further strengthens HKEX’s ETP ecosystem.

Bitcoin and Ethereum ETF Competition

Issuers of the spot Bitcoin and Ethereum ETFs include China Asset Management Co., Harvest Global Investments, Bosera International, and HashKey Capital. This development is expected to spark a new wave of competition in the ETF market.

In 2023 and the first quarter of 2024, HKEX introduced 16 new ETFs, bringing the total offerings to 179. The exchange aims to diversify its product range and solidify its position in the global market.

Brian Roberts expressed the exchange’s commitment to collaborating with stakeholders to introduce more innovative products to the international marketplace.