Spot Bitcoin and Ethereum ETFs Commence Trading in Hong Kong

Apr. 30, 2024
Spot Bitcoin and Ethereum ETFs Commence Trading in Hong Kong

The highly anticipated spot Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs) have been launched on the Hong Kong Stock Exchange today. Earlier this month, the Hong Kong Securities and Futures Commission (SFC) approved spot BTC and ETH ETFs managed by China Asset Management, Bosera, and Harvest. 

Speaking to Bloomberg TV, Yimei Li, China Asset Management’s CEO, said that the launch of spot BTC and ETH ETFs on Thursday opens the door for many RMB (Chinese yuan) holders seeking alternative investments. Hong Kong Exchanges and Clearing Ltd. (HKEX) listed six spot ETFs.

The listed products include:

  1. ChinaAMC Bitcoin ETF (3042.HK)
  2. ChinaAMC Ether ETF (3046.HK)
  3. Bosera HashKey Bitcoin ETF (3008.HK)
  4. Bosera HashKey Ether ETF (3009.HK)
  5. Harvest Bitcoin Spot ETF (3439.HK)
  6. Harvest Ether Spot ETF (3179.HK)

In addition to investors in Hong Kong, the spot ETFs are available for qualified investors outside the city. However, those in the Chinese mainland are still restricted from investing in the products.

Head of equities product development of HKEX, Brian Roberts, said:

“Following the success of VA Futures ETFs, the listing of Asia’s first spot VA ETFs will further enhance the product diversity and liquidity of the Hong Kong ETP market.”

A key feature that distinguishes Hong Kong spot crypto ETFs from their US counterparts is their “in-kind” feature. Investors can buy the ETFs with BTC or ETH and subsequently sell them for cash or vice versa, facilitating seamless two-way investment flexibility, HashKey added.

Hong Kong’s Spot ETFs See Over $6.3M in Half-day Volume Upon Debut

According to data from the Hong Kong Stock Exchange, Hong Kong’s six new crypto products recorded a trading volume of approximately HK$49.4 million ($6.3 million) during the morning session on their first trading day. The “ChinaAMC Bitcoin ETF” from China Asset Management led in trading volume, with HK$22.97 million ($2.94 million). Meanwhile, the ChinaAMC Ethereum ETF ranked second among the six ETFs with a trading volume of HK$10.47 million ($1.34 million).

Harvest saw HK$8.11 million ($1.04 million) in its spot BTC ETF’s volume and HK$2.18 million ($279,000) in Ether’s. Meanwhile, Bosera HashKey BTC ETF recorded HK$3.59 million ($460,000), and its Ether ETF’s volume was HK$1.53 million ($196,000). In contrast, when the 11 spot Bitcoin ETFs in the US started trading in January, their first-day volume amounted to approximately $4.6 billion.

Syed Ali Haider

Researcher & Editor
Ali Haider is a Blockchain enthusiast and writer passionate about enhancing the acceptance, adoption, and integration of Blockchain technology worldwide. He has also advocated for digital freedom and cybersecurity for many years.