Hong Kong Becomes First in Asia to Introduce Bitcoin and Ethereum ETFs
The Hong Kong Stock Exchange (HKEX) made history today by launching the first spot Bitcoin and Ethereum exchange-traded funds (ETFs) in Asia. This move comes as investor interest in virtual asset ETFs has been on the rise since the introduction of VA Futures ETFs in late 2022.
According to the official announcement by HKEX, the combined average daily turnover for the three VA Futures ETFs listed in Hong Kong reached $51.3 million in the first quarter of 2024, a significant increase from the previous year. These ETFs also attracted $529 million in net inflows during the same period.
The introduction of spot VA ETFs in Hong Kong has further expanded the range of exchange-traded products (ETPs) on the HKEX. ETFs and Leveraged and Inverse Products (L&I Products) have been among the fastest-growing segments in the Hong Kong Stock Exchange.
HKEX’s Head of Equities Product Development, Brian Roberts, expressed excitement about the addition of spot VA ETFs, stating that it provides investors with access to a new asset class. He also mentioned that the listing of Asia’s first spot VA ETFs will enhance the product diversity and liquidity of the Hong Kong ETP market.
The spot Bitcoin and Ethereum ETFs in Hong Kong are being issued by China Asset Management Co. (China AMC), Harvest Global Investments, Bosera International, and HashKey Capital. This move is expected to ignite a new round of competition in the ETF market.
In recent years, HKEX has been focused on expanding its product offerings in order to enhance its position in the global market. In 2023 and the first quarter of 2024 alone, HKEX introduced 16 new ETFs, bringing the total number of offerings to 179. The exchange plans to continue working closely with stakeholders to launch more products in the international marketplace.
The introduction of spot Bitcoin and Ethereum ETFs in Hong Kong showcases the region’s growing acceptance and recognition of cryptocurrencies as legitimate investment assets. This move is likely to attract more institutional and retail investors to the virtual asset market.