The Hong Kong market is about to usher in a landmark development - the first batch of virtual asset spot ETFs are expected to be approved! On April 15, subsidiaries of three well-known fund companies, including China Asset Management (Hong Kong), Bosera International and Harvest International, announced that they plan to launch ETF products that can directly invest in Bitcoin and Ethereum spot. This news was released just a week ago, and these companies have just obtained the qualifications for virtual asset asset management services.
Although the market has responded enthusiastically, according to industry insiders, the Hong Kong Securities and Futures Commission still needs to complete further data review. It is expected that the official list of relevant ETF products will be made public before the end of April.
Industry experts said that this move will not only open up new investment channels for Asian investors, but also be an important step for Hong Kong to become an international virtual asset financial center. The launch of these ETF products indicates that Hong Kong's position in the global financial market will be further consolidated due to its positive attitude towards virtual assets.
Spot Bitcoin and Ethereum ETFs Coming
Hong Kong is about to usher in an exciting financial innovation - spot ETF products focusing on virtual assets are ready to go! On April 15, China Asset Management (Hong Kong) announced that it has obtained formal approval from the Hong Kong Securities Regulatory Commission to provide investors with specialized virtual asset management services. Now, they are planning to launch a series of ETF products that will directly invest in the spot markets of Bitcoin and Ethereum.
In order to ensure the success and security of this innovative project, China Asset Management (Hong Kong) has cooperated with OSL Digital Securities Co., Ltd., a leading company in the virtual asset industry, and the well-known custodian BOCI Prudential Trustee Co., Ltd. to jointly conduct in-depth research and strategic deployment. This move marks that Hong Kong continues to play a leading role in the global virtual asset financial field and opens a new chapter in the integration of capital markets and digital currency economy.
Boshi International, which has also been approved by the Hong Kong Securities and Futures Commission (SFC), recently announced that it will expand its business into asset management involving virtual assets based on its existing asset management services (i.e. Type 9 license).
According to the announcement, Bosera International will join forces with Hashkey Capital, and the two parties plan to use their respective advantageous resources to cooperate in a number of key areas such as virtual asset spot ETFs, blockchain technology and financial technology. This partnership aims to jointly promote the issuance of Bitcoin and Ethereum spot ETFs, providing investors with a safe, compliant and convenient investment method to directly access the markets of these two mainstream virtual assets. This move not only expands Bosera International’s business scope, but also opens up new possibilities for virtual asset investors.
On April 6, the Hong Kong International Convention and Exhibition Center became the focus of technology and innovation. On this day, the "2024 Hong Kong Web3 Carnival" co-organized by Wanxiang Blockchain Lab and HashKey Group and hosted by W3ME opened grandly. In this eye-catching event, Bosera International and HashKey Capital, an asset management company under the financial technology giant HashKey Group, signed a strategic cooperation agreement. The two parties will carry out in-depth cooperation in multiple key areas such as virtual asset spot ETFs, blockchain technology and financial technology, marking a new chapter in the cooperation between the two parties in the field of financial technology.
Today, Harvest Global Investors announced that it has obtained approval from the Hong Kong Securities and Futures Commission to add virtual asset management services to its existing asset management business, and plans to launch two new ETFs focusing on spot investments in Bitcoin and Ethereum.
Han Tongli, CEO and CIO of Harvest International, said that this move not only highlights Hong Kong's institutional advantages as an international financial center, but also reflects the region's forward-looking and enterprising spirit in the field of financial technology. Harvest International has long been committed to industry innovation and meeting the diverse needs of investors. As early as a few years ago, it has established a number of cutting-edge technology laboratories, such as digital laboratories, AI laboratories, and meta laboratories, and plans to continue to lead market innovation in the fields of blockchain assets and artificial intelligence investment in the future.
In order to further lower the threshold for investors to enter the digital cryptocurrency market, Harvest Global will also cooperate with OSL Digital Securities Co., Ltd., the first protected digital asset platform licensed by the Hong Kong Securities Regulatory Commission. This cooperation will effectively address regulatory and custody challenges and promote the circulation and popularization of cryptocurrency assets.
Industry sources revealed that these new products still need to be further reviewed by the Hong Kong Securities and Futures Commission, and the relevant list is expected to be announced next week. The issuance of these virtual asset spot ETFs not only provides investors with new asset allocation options, but is also expected to further strengthen Hong Kong's position as an international financial center and virtual asset hub.
In addition, since the Hong Kong Securities and Futures Commission clearly stated in December last year that it was ready to accept applications for virtual asset spot ETFs, in just four months, the Hong Kong subsidiaries of the first batch of leading fund companies have obtained virtual asset asset management service qualifications, marking that Hong Kong continues to maintain its leading position in the global financial field.
Hong Kong virtual asset ETFs attract attention
Since the beginning of 2024, the virtual asset market has experienced significant growth, and the global market is paying close attention to it. According to the latest data from Bloomberg, the total market value of cryptocurrencies has exceeded $2.53 trillion. Among them, Bitcoin’s performance is particularly eye-catching, achieving a 69% increase in the first quarter of this year alone. One of the key factors driving this growth is spot Bitcoin ETFs, which attracted more than $12 billion in inflows in the first quarter and currently hold approximately 831,000 bitcoins worth nearly $59 billion.
Some financial institutions in Hong Kong have observed that there is a clear correlation between cryptocurrency prices and macroeconomic liquidity. Although the Fed's rate cuts may be delayed, market liquidity remains sufficient. It is estimated that once the rate cuts are implemented, it will further drive up cryptocurrency prices. Bitcoin's low correlation with major global financial markets provides a good means of diversification for investment portfolios. As Bitcoin attracts more and more attention from the public and institutional investors, its role in high-risk investment portfolios is becoming increasingly prominent, and it is expected to bring better returns to investors.
At the same time, driven by the strong performance of Bitcoin and Ethereum, virtual asset futures ETFs in the Hong Kong market have also achieved rapid growth. For example, the scale of Southern East Bank Bitcoin Futures ETF exceeded HK$1 billion for the first time last month, and the current scale has reached HK$900 million, an increase of more than 3 times since 2024. The scale of Samsung Bitcoin Futures ETF has also exceeded the HK$100 million mark, with the latest scale of HK$147 million, an increase of nearly 1.5 times since the beginning of this year. In addition, the scale of Southern Ethereum ETF exceeded HK$200 million by the end of last week, more than doubling from the end of last year.
Industry experts predict that once the virtual asset spot ETF is approved in Hong Kong, it will further promote the development of the virtual asset market in Hong Kong and even the entire Asia, attract more global capital inflows, and stimulate the basic vitality of the market. This not only reflects Hong Kong's openness and innovative spirit in the emerging financial field, but also provides valuable experience for other countries and regions in virtual asset supervision.
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