Hong Kong Stock Exchange Launches New Bitcoin and Ethereum ETFs in Asia
The Hong Kong Stock Exchange has made a groundbreaking announcement today with the launch of new spot Bitcoin and Ethereum exchange-traded funds (ETFs). This marks the introduction of the first spot virtual asset (VA) ETFs in Asia, setting a new milestone in the world of cryptocurrency investment.
Investor interest in virtual asset ETFs has been on the rise since the launch of VA Futures ETFs in late 2022. The combined average daily turnover for the three VA Futures ETFs listed in Hong Kong saw a significant increase to $51.3 million in the first quarter of 2024, up from $8.9 million the previous year. These ETFs also attracted $529 million in net inflows during the same period, indicating a growing demand for virtual asset investment options.
The introduction of Spot VA ETFs in Hong Kong is seen as a positive development by HKEX Head of Equities Product Development Brian Roberts, who stated, “The listing of Asia’s first spot VA ETFs will further enhance the product diversity and liquidity of the Hong Kong ETP market.” This move is expected to provide investors with access to a new asset class and expand the ETP ecosystem in Hong Kong.
The spot Bitcoin and Ethereum ETFs are issued by China Asset Management Co. (China AMC), Harvest Global Investments, and Bosera International and HashKey Capital, signaling a new wave of competition in the ETF market. With the introduction of these new ETFs, HKEX now offers a total of 179 ETFs, with plans to continue diversifying its product offerings and strengthening its position in the global market.
As the cryptocurrency market continues to evolve, the launch of spot Bitcoin and Ethereum ETFs in Hong Kong represents a significant step towards providing investors with more options for virtual asset investment. The competition among issuers and the growing interest in virtual asset ETFs indicate a promising future for cryptocurrency investment in the region.
