GetBlock Magazine - What happened? The Hong Kong Stock Exchange (HKEX) became the first in Asia to list virtual asset spot funds (ETFs). There are three Bitcoin funds and three Ethereum funds available on the site, managed by China Asset Management, Harvest Global, as well as Bosera together with the operator of the first licensed crypto exchange in Hong Kong, HashKey.
Press release
What else is known? HKEX officials say the launch strengthens the city's position as the region's leading ETF market, expanding investor opportunities and increasing liquidity. “We look forward to continuing to work closely with stakeholders to bring more products to the international market,” the company emphasized.
As analyst Colin Wu notes, the new products are also available to non-Hong Kong residents. They will be able to purchase fund shares if they meet local regulatory requirements, such as passing due diligence. However, residents of mainland China are prohibited from investing in crypto products due to industry restrictions effective from 2021.
The products available on the site are Bosera HashKey Bitcoin ETF (3008.HK), Bosera HashKey Ether ETF (3009.HK), ChinaAMC Bitcoin ETF (3042.HK), ChinaAMC Ether ETF (3046.HK), Harvest Bitcoin Spot ETF (3439.HK ) and Harvest Ether Spot ETF (3179.HK).
Amid the launch, Bitcoin immediately rose above $64,500, but by the time of writing, it had corrected to $63,140. Ethereum rose to $3,245, but then dropped to $3,158.
At the end of 2022, HKEX launched crypto futures funds for the first time. In the first quarter of 2024, the net inflow of funds into three such funds amounted to $529 million, and the total average daily turnover reached $51.3 million, while a year earlier the figure was only 8.9 million.
Bloomberg analyst Eric Balchunas does not expect significant inflows into Hong Kong spot crypto ETFs in the medium term due to the specifics of the local market.
In the US, ETH-based spot funds have still not received securities regulator approval, while Bitcoin ETFs have been trading since January 11 of this year. The net inflow of funds for ten such products exceeded $12 billion.
In turn, the Australian Stock Exchange (ASX) is also preparing to launch spot Bitcoin funds before the end of this year, as reported by the media citing anonymous sources.