Hong Kong Debuts Asia’s First Spot Crypto ETFs

Hong Kong Exchanges and Clearing Limited (HKEX) made an official statement revealing that the ETFs for Bitcoin and Ethereum commenced trading on Tuesday, April 30

Hong Kong Debuts Asia's First Spot BTC and ETH ETFs

Today, the Hong Kong Stock Exchange introduced novel exchange-traded funds (ETFs) for spot Bitcoin and Ethereum.

Hong Kong Exchanges and Clearing Limited (HKEX) made an official statement revealing that the ETFs for Bitcoin and Ethereum commenced trading on Tuesday, April 30. This event marks the debut of the first ETFs based on actual virtual assets (VAs) in the Asian market.

Broadening Options for Investing in Digital Assets

The disclosure revealed a notable surge in investor interest in Virtual Asset (VA) Exchange-Traded Funds (ETFs), particularly after the debut of VA Futures ETFs towards the end of 2022. By the initial quarter of 2024, the average daily trading volume of the three VA Futures ETFs listed on the Hong Kong Stock Exchange had jumped to $51.3 million, up from $8.9 million the year before.

Additionally, these ETFs saw a significant influx of $529 million in net investments during the same timeframe. The variety of exchange-traded products (ETPs), including ETFs and Leveraged and Inverse Products (L&I Products), on the Hong Kong Stock Exchange, has expanded rapidly.

Brian Roberts, the Head of Equities Product Development at HKEX, highlighted the launch of Spot VA ETFs in Hong Kong as an exciting new development. He also said that the listing will further enhance the liquidity of the Hong Kong ETP market, enhance HKEX’s ETP ecosystem, and offer investors a novel asset class in which to invest.

China Asset Management Co. (China AMC), Harvest Global Investments, Bosera International, and HashKey Capital, have launched spot ETFs for Bitcoin and Ethereum. As noted in an earlier analysis, this move is anticipated to ignite a fresh wave of competition among ETF providers. Throughout 2023 and into the first quarter of 2024, the Hong Kong Stock Exchange (HKEX) added 16 new ETFs, bringing its total offerings to 179. HKEX aims to broaden its range of products and strengthen its global market presence.