Today marks a historic milestone for Hong Kong’s financial market as the region rolls out its first spot bitcoin and ether exchange-traded funds (ETFs). This groundbreaking development positions Hong Kong as Asia’s pioneer in offering retail and institutional investors regulated access to major cryptocurrencies through traditional investment channels.
Six virtual asset spot ETFs—launched by three leading asset managers: China Asset Management (Hong Kong), Bosera International, and Harvest Fund International—have officially commenced issuance and are set to begin trading on the Hong Kong Stock Exchange (HKEX) on April 30.
These ETFs are designed to track the performance of bitcoin and ether using the CME CF Bitcoin Index or CME CF Ether Index (APAC closing prices), offering investors a transparent, compliant, and convenient way to gain exposure to digital assets without directly managing private keys or navigating crypto exchanges.
How the New ETFs Work
Each of the six ETFs invests 100% of its assets directly in either bitcoin or ether. They do not engage in derivative trading, securities lending, repurchase agreements, or leverage. A minimal amount of cash may be held temporarily to cover operational expenses or meet redemption requests.
👉 Discover how you can prepare for the next wave of digital asset investing.
This full backing model ensures that each fund’s net asset value closely mirrors the price movements of the underlying cryptocurrency, making them ideal tools for both short-term traders and long-term holders seeking regulated exposure.
Key Differences Among the Issuers
While all ETFs share the same core objective—tracking crypto prices—they differ in fees, pricing structure, trading units, and investor accessibility:
Management Fees:
- Harvest Fund: 0.3% annual management fee; first 6 months free.
- Bosera International: 0.6% fee; waived for the first 4 months post-listing.
- China Asset Management (Hong Kong): 0.99% fee with no initial waiver.
Initial Offering Price:
- Harvest and China Asset Management priced their ETFs at $1 per unit.
- Bosera priced its bitcoin ETF at 1/10,000th of the index value, meaning ~10,000 shares ≈ 1 BTC.
- Its ether ETF is priced at 1/1,000th of the index, so ~1,000 shares ≈ 1 ETH.
Trading Units:
- Harvest: Minimum application of 100,000 units in primary market; secondary market trades in lots of 100.
- Bosera: Bitcoin ETF requires 50,000 units minimum; ether ETF requires 100,000 units. Secondary market trades in 10-unit increments.
- China Asset Management: Offers a RMB trading counter, enhancing accessibility for mainland-linked investors.
Additionally, each fund uses different virtual asset platforms and market makers—factors that can affect liquidity and total cost of ownership. Investors should evaluate these nuances when selecting an ETF.
Why Hong Kong’s Move Matters
The launch follows the U.S. Securities and Exchange Commission’s approval of spot bitcoin ETFs in January 2024—after a decade of deliberation. Since then, U.S. funds have attracted nearly $58.9 billion in inflows within just three months, according to Bloomberg data.
Now, Hong Kong emerges as a strategic bridge between Western capital markets and Asia’s growing appetite for digital assets.
“Web3 and the digital economy represent one of the most promising investment frontiers,” said China Asset Management (Hong Kong). “Cryptocurrencies are central to this transformation. As the first in Asia to offer spot bitcoin and ether ETFs, Hong Kong is paving the way for broader adoption.”
This regulatory step forward reflects Hong Kong’s ambition to become a global hub for virtual asset innovation—balancing investor protection with financial modernization.
Unique Advantages Over U.S. ETFs
Hong Kong’s spot crypto ETFs offer several competitive advantages:
- Dual Subscription Mechanism: Investors can subscribe using either cash or physical crypto, a feature not widely available in U.S. equivalents.
- Retail Access: Unlike U.S. markets where only accredited investors can participate, Hong Kong allows both retail and institutional investors to buy these ETFs.
- Lower Entry Barrier: With basic KYC verification and a simple crypto knowledge assessment, most Hong Kong residents can invest—no professional investor status required.
👉 Learn how real-time crypto trading integrates with traditional finance ecosystems.
This inclusive approach could accelerate adoption across Asia, where demand for accessible crypto products has been steadily rising.
Market Outlook and Growth Potential
Bloomberg Intelligence’s APAC ETF chief analyst, Ivy Xian, forecasts that Hong Kong’s spot crypto ETFs could reach $1 billion in assets under management (AUM)** within months—and potentially scale to **$10 billion over time.
However, success hinges on continued development of infrastructure and ecosystem support. Currently, only two virtual asset platforms are licensed by the Securities and Futures Commission (SFC): Hashkey Exchange and OSL Digital Securities. These platforms play a critical role in custody, settlement, and redemption processes.
Xian also noted lingering concerns about cryptocurrency legality in some jurisdictions but emphasized that regulated products like ETFs help build trust and legitimacy.
Who Can Invest?
While Hong Kong residents—including non-permanent ones with valid IDs—can participate, mainland Chinese investors currently cannot directly access these ETFs due to regulatory restrictions.
That said, individuals with Hong Kong identification (even if based on residency status rather than permanent citizenship) may trade these funds under compliance guidelines.
This creates a nuanced pathway for some mainland-affiliated investors while adhering to cross-border capital controls.
Frequently Asked Questions (FAQ)
Q: What are spot crypto ETFs?
A: Spot cryptocurrency ETFs hold actual bitcoin or ether in custody and aim to mirror their real-time market prices. Unlike futures-based ETFs, they provide direct exposure to the underlying asset.
Q: How do these ETFs differ from those in the U.S.?
A: Hong Kong ETFs allow retail investor access, support in-kind redemptions, and enable subscription via physical crypto, offering greater flexibility than most U.S. counterparts.
Q: Are there risks involved?
A: Yes. While regulated, these ETFs inherit the volatility of crypto markets. Prices can fluctuate significantly based on macro trends, regulatory news, or technological shifts.
Q: Can I redeem my ETF shares for actual bitcoin or ether?
A: Yes—through authorized participants who facilitate physical redemption, though retail investors typically access gains via secondary market sales.
Q: Is there a minimum investment?
A: Minimums vary by issuer. For example, Bosera’s bitcoin ETF starts at 50,000 units in the primary market, while secondary market trades begin at just 10 units.
Q: Will more crypto ETFs be launched in Hong Kong?
A: Likely. With strong investor interest and regulatory momentum, future expansions could include altcoin-based ETFs or multi-asset crypto funds.
The Road Ahead
Hong Kong’s launch of spot bitcoin and ether ETFs signals a turning point in Asia’s financial evolution. By integrating digital assets into mainstream investment frameworks, it opens new doors for wealth diversification, technological engagement, and regional financial integration.
As infrastructure matures and adoption grows, these funds could become foundational instruments in modern portfolios—bridging traditional finance with the decentralized future.
👉 Stay ahead with tools that connect you to emerging digital asset opportunities.