Key Insights
- Hong Kong approves first batch of spot bitcoin, ether exchange-traded funds to trade from April 30
- Move marks Hong Kong’s latest embrace of crypto as it positions itself as digital assets hub
- Six funds overseen by asset managers get greenlight, estimated to draw $1B in year one
HONG KONG (MarketsXplora) – Hong Kong’s securities regulator has formally approved for trading the city’s first batch of spot exchange-traded funds (ETFs) tracking bitcoin and ether, according to analysts, marking an initial foray into crypto assets as the finance hub seeks to establish itself as a digital assets center.
Six spot crypto ETFs – three linked to bitcoin and three to ether – will list on the Hong Kong stock exchange on April 30, Bloomberg Intelligence ETF analysts said in a Wednesday webinar, allowing investors to wager on the top two cryptocurrencies without directly holding the tokens.
The funds were approved by Hong Kong’s Securities and Futures Commission (SFC) earlier this month and are managed by China Asset Management, Harvest Global, Bosera Asset Management and HashKey Capital Management.
While likely to attract much less capital than similar products in the United States overseen by titans like BlackRock Inc and Fidelity Investments, the launch represents a positive step for Hong Kong’s digital assets ambitions.
Analysts estimate the Hong Kong spot crypto ETFs could draw about $1 billion in assets under management within the first year or two of trading.
“This is an important milestone in the development of Hong Kong as a crypto hub,” said Michael Chan, an ETF analyst at Bloomberg Intelligence.
“While inflows may start slow initially, these spot crypto ETFs open the door for more digital asset products to potentially be approved in Hong Kong.”
Mainland Chinese investors are currently prohibited from investing in the Hong Kong-regulated spot crypto ETFs, the analysts added.