Hong Kong has cemented its position as a rising crypto hub with the official debut of six spot Bitcoin and Ether ETFs on the Hong Kong Stock Exchange (HKEX) today. This marks a significant milestone, making them the first spot crypto ETFs to be listed in Asia.
The six ETFs, managed by China Asset Management, Harvest Global, Bosera, and HashKey, offer investors exposure to Bitcoin and Ether, two of the leading cryptocurrencies. This paves the way for greater accessibility and diversification within the regional financial market.
“Following the success of VA Futures ETFs, the listing of Asia’s first spot VA ETFs will further enhance the product diversity and liquidity of the Hong Kong ETP market,” stated Brian Roberts, head of equities product development at HKEX.
While mainland Chinese investors are currently restricted from participating, the ETFs are accessible to qualified investors outside of Hong Kong. A key differentiator from US counterparts is the in-kind feature, allowing investors to seamlessly buy and sell the ETFs using Bitcoin or Ether directly.
“This now caters to a different group of people,” explained Rebecca Sin, an ETF analyst at Bloomberg. “Everyone that’s holding bitcoin and ether can potentially now swap this into an ETF.”
This launch builds upon the success of the three previously listed futures-based crypto ETFs in Hong Kong. The combined average daily turnover for these products reached HK$51.3 million in the first quarter of 2024, reflecting growing investor interest.
Also Read: Hong Kong’s Crypto ETFs Debut with $6.3 Million in Trading Volume
Hong Kong’s foray into spot crypto ETFs signifies its ambition to become a leading player in the digital asset space. With established financial infrastructure and a regulatory framework tailored for crypto products, the city is well-positioned to attract further investment and innovation in the years to come.
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