Hong Kong Spot Bitcoin and Ether ETFs Rake in Over $200 Million in Assets

Hong Kong's spot Bitcoin and Ether exchange-traded funds (ETFs) have amassed over $200 million in total assets since their April 30 launch. According to data from Arkham Intelligence, the Bosera HashKey spot Bitcoin and Ether ETFs hold 964 BTC and 4,290 ETH, respectively, totaling $71.94 million in assets under management. ChinaAMC's ETFs have gathered $123.61 million, while Harvest Global's asset data is yet to be updated.

Hong Kong's Spot Bitcoin and Ether ETFs Attract Over $200 Million in Assets

Hong Kong, May 5, 2023 - Hong Kong's newly launched spot Bitcoin and Ether exchange-traded funds (ETFs) have garnered significant interest from investors, amassing over $200 million in total assets since their debut on April 30.

Arkham Intelligence data reveals that the Bosera HashKey spot Bitcoin and Ether ETFs have accumulated 964 Bitcoin (BTC) and 4,290 Ether (ETH), respectively, amounting to $71.94 million in assets under management. Notably, ChinaAMC's spot Bitcoin and Ether ETFs have also attracted $123.61 million in combined assets, according to Eric Balchunas, senior ETF analyst at Bloomberg.

As of this publication, the Hong Kong Stock Exchange has not yet updated asset management data for the spot Bitcoin and Ether ETFs of Harvest Global, the third ETF issuer. However, the combined turnover for these two ETFs has reached $23 million.

While the asset base of Hong Kong's spot ETFs pales in comparison to their U.S. counterparts, which attracted nearly $4 billion in the first week of trading and $4.5 billion in volume on the first day alone, industry experts remain optimistic about their potential.

"We tried to warn everyone to lower expectations regarding Hong Kong," commented Balchunas. "That said, if you localize numbers, this was BIG: e.g., ChinaAMC bitcoin ETF took in $123m on Day One, which already ranks it 6th of 82 ETFs launched in past 3yrs in HK and Top 20% overall."

Importantly, non-Hong Kong nationals can subscribe to or purchase units in the ETFs if they meet local regulatory requirements, including passing customer due diligence. Additionally, Hong Kong crypto ETFs allow investors to subscribe for ETF units directly using BTC and ETH, and vice versa, a feature not available for U.S. counterparts.

According to a survey conducted by Hong Kong-regulated crypto exchange OSL on April 28, 76.9% of crypto-knowledgeable respondents in the city plan to invest in the novel spot Bitcoin and Ether ETFs. "This positive investor sentiment powerfully points to the growing acceptance and importance of digital assets in the region's economy, and Hong Kong is once again marking its place as the digital asset hub," stated Gary Tiu, OSL's executive director and head of regulatory affairs.

Despite the enthusiasm, Hong Kong's crypto ETFs remain accessible only to the city's estimated 6.4 million adult residents. Mainland Chinese investors, whose numbers exceed 1 billion, are currently barred from accessing the novel ETFs unless they possess a Hong Kong residence permit.