On April 30, six virtual asset spot ETFs from China Asset Management (Hong Kong), Bosera International, and Harvest International will be listed and traded on the Hong Kong Stock Exchange. The three institutions have certain differences in product fees, trading, issuance, virtual asset platforms, etc. Each has one Bitcoin spot ETF and one Ethereum spot ETF, namely Bosera HashKey Bitcoin ETF (03008), Bosera HashKey Ethereum ETF (03009), China Asset Management Bitcoin ETF (03042), China Asset Management Ethereum ETF (03046), Harvest Bitcoin Spot ETF (03439) and Harvest Ethereum Spot ETF (03179). The investment goal of the above products is to closely follow the performance of Bitcoin/Ethereum, and the investment results are measured by the performance of the CME CF Bitcoin Index or the Ethereum Index (Asia Pacific Closing Price).
In terms of management fees, the annual management fee of Harvest Bitcoin and Ethereum spot ETF is 0.3% of the net asset value, and the management fee is waived in the first 6 months after the listing date; the management fee of Bosera Bitcoin and Ethereum spot ETF is 0.6% of the net asset value, and the fee is temporarily waived in the first 4 months after the listing date; the management fee of China Asset Management (Hong Kong) is 0.99%. In addition, China Asset Management (Hong Kong) has also set up RMB counters for its Bitcoin spot ETF and Ethereum ETF.
In terms of issue price, the products of Harvest Asset Management and China Asset Management (Hong Kong) were issued at US$1 per share. The initial issue prices of Bose Bitcoin ETF and Ethereum ETF were basically consistent with 1/10000 and 1/1000 of the tracking index on April 26, 2024, respectively. That is, the converted net value of the fund shares corresponds to approximately 0.0001 Bitcoin and 0.001 Ethereum, which means that holding 10,000 shares is approximately equal to 1 Bitcoin, and 1,000 shares is approximately equal to 1 Ethereum.
Tiger Brokers (Hong Kong) announced that its Tiger Trade App will also provide zero commission and zero platform fee trading for the first six virtual asset spot ETFs issued in Hong Kong to all Hong Kong customers starting from April 30.
It is reported that Hong Kong spot cryptocurrency ETFs are open to professional and retail investors in Hong Kong. For Hong Kong investors, as long as they pass the cryptocurrency knowledge test on the basis of basic KYC (real-name authentication), they can purchase Hong Kong's spot Bitcoin and Ethereum ETFs. Hong Kong investors must be professional investors to purchase the corresponding ETFs in the United States, which have high investment threshold restrictions.
Mainland Chinese investors are not currently allowed to participate in buying and selling. The joint circular issued by the Hong Kong Securities and Futures Commission and the Hong Kong Monetary Authority on December 22, 2023 regarding virtual asset-related activities of intermediaries shows that both the virtual asset futures ETFs currently available in the Hong Kong market and the virtual asset spot ETFs to be issued in the future cannot be sold to retail investors in mainland China and other places where the sale of virtual asset-related products is prohibited. However, some media have stated that mainlanders holding Hong Kong identity cards, even if they are not permanent residents of Hong Kong, can participate in the trading of the above-mentioned ETFs under compliance conditions.
