Today, several spot Bitcoin and Ethereum Exchange-Traded Funds (ETFs) made their debut on the Hong Kong Stock Exchange (HKEX) amid the struggling cryptocurrency market. This significant development not only offers investment opportunities but also positions the city as a pivotal hub for digital finance globally.
Hong Kong spot Bitcoin and Ether ETFs
Today, on April 30, 2024, Hong Kong launched ETFs including Bosera HashKey Bitcoin ETF (BOS HSK BTC), Bosera HashKey Ether ETF (BOS HSK ETH), ChinaAMC Bitcoin ETF (CAM BTC), ChinaAMC Ether ETF (CAM ETH), Harvest Bitcoin Spot ETF (HGI BTC), and Harvest Ether Spot ETF (HGI ETH). Apart from their debut in Hong Kong, these ETFs will be available in multiple currencies such as Hong Kong dollars (HKD), US dollars, and Renminbi (RMB). Additionally, these ETFs have seen promising opening prices on the HKEX.
The Bosera HashKey ETFs stand out with their innovative ‘in-kind’ subscription mechanism, allowing investors to subscribe to ETF shares directly using Bitcoin and Ethereum. This feature offers seamless two-way investment flexibility, marking a transformative step in how investors engage with cryptocurrency markets.
Moreover, Bosera’s ETFs are pegged to reliable and transparent benchmarks such as the CME CF Bitcoin Reference Rate and the CME CF Ether-Dollar Reference Rate for the Asia Pacific region, ensuring credibility in pricing. Notably, these ETFs are not limited to Hong Kong nationals; they are also available to international investors who meet local compliance standards, reflecting an inclusive approach that could enhance liquidity and market stability.
Deng Chao, CEO of HashKey Capital, highlights the importance of these launches in democratizing access to cryptocurrencies and bridging traditional finance with the burgeoning crypto ecosystem.
The strategic timing and location of these ETFs are crucial, with Hong Kong solidifying its position as a forward-thinking financial hub in the digital age. Executives from asset management giants express optimism, highlighting Hong Kong’s competitive advantages in the global virtual asset field.
Market reaction after ETF launch in Hong Kong
The initial market response has been overwhelmingly positive, with substantial trading volumes and price stability on the opening day. Additionally, following this launch, Hong Kong became the second after the United States to offer ETFs in the country, although a spot Ether ETF is still awaiting approval in the United States.
However, following this massive debut of Bitcoin and Ether ETFs in the Asian market hours, there hasn’t been any observed price impact on Bitcoin and Ethereum. As of writing, the overall cryptocurrency market is down by 2%, whereas Bitcoin experienced 1.4% of upside momentum and Ethereum on the other hand experienced 1% in the last 24 hours.