Hong Kong Bitcoin ETFs Amass $230 Million AUM in Debut Week

Hong Kong’s Spot Bitcoin Exchange-Traded Funds Overview

Hong Kong’s spot Bitcoin exchange-traded funds (ETFs) have garnered significant attention by securing $230 million in assets under management (AUM) during their first week of operation. This marks a substantial milestone in the realm of virtual asset investments.

Bitcoin ETF AUM Breakdown by Issuers

• China Asset Management Co. (China AMC): $116 million for Bitcoin and $19 million for Ethereum
• Bosera International and HashKey Capital: $57 million AUM for Bitcoin ETF and $11.6 million for Ethereum ETF
• Harvest Global Investment: Approximately $57 million managed for Bitcoin and $11.5 million for Ethereum

Combined, the three spot Bitcoin ETFs have accumulated $230 million in AUM, while the three Ethereum ETFs have reached around $43 million.

Future Growth Projections

Sui Chung, CEO of CF Benchmarks, a subsidiary of Kraken, anticipates a promising future for crypto ETFs in Hong Kong. Chung forecasts that these ETFs will surpass $1 billion in assets under management by the end of 2024, indicating a potential upward trend in investor interest and adoption.

Insights on Hong Kong ETFs

BitGo’s Managing Director of the Asia-Pacific region, Hobeng “HB” Lim, highlighted the advantages of Hong Kong’s ETF offerings compared to those in North America or Europe. Lim pointed out that some investors may prefer Hong Kong’s ETFs due to more favorable tax conditions and regulatory accessibility, providing an alternative investment avenue for those seeking such benefits.

Leveraging Hong Kong’s comprehensive regulatory framework for virtual assets, Lim also emphasized the importance of further enhancements. He suggested the establishment of a regulatory framework for independent virtual asset custodians to expand custody options and adjustments to proposed regulations concerning over-the-counter (OTC) trading of virtual assets in Hong Kong.