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Crypto spot ETFs to start trading in Hong Kong on April 30
ChinaAMC, HGI, and Bosera International will be the first issuers
Yuki Li 25 Apr 2024

Hong Kong’s Securities and Futures Commission (SFC) has officially approved the launch of the crypto spot exchange-traded funds (ETFs), further expanding the range of digital assets available to retail investors in the city.

The crypto spot ETFs are expected to begin trading on the Hong Kong Stock Exchange on April 30.

According to separate announcements by China Asset Management (Hong Kong) (ChinaAMC (HK)) and Harvest Global Investment Limited (HGI), the approved offerings include ChinaAMC Bitcoin ETF, ChinaAMC Ether ETF, Harvest Bitcoin Spot ETF and Harvest Ether Spot ETF.

Bosera Funds (International) and HashKey Capital have also announced that they will co-launch spot bitcoin and ether ETFs.

OSL, one of the two SFC-licensed virtual trading platforms (VATPs), has been appointed as the VATP and sub-custodian for ChinaAMC (HK) and HGI. HashKey Exchange, the other licensed VATP, will provide VATP service for Bosera International. BOCI-Prudential will be the custodian for all the six crypto spot ETFs.

The three asset management firms are competing for management fees. According to data from Bloomberg Intelligence, the management fee for ChinaAMC’s bitcoin and ether spot ETFs is 0.99%, the highest among the three issuers. HGI will apply zero management fee in the first six months, after which it will charge a fee of 0.3%. Bosera International’s fee is 0.6%.

The crypto spot ETFs, the first such products to be brought to the market in Asia, will track the spot prices of bitcoin and ethereum (before fees and expenses). The offerings simplify the process for traditional equity market investors by allowing them to invest in cryptocurrencies using existing accounts, thereby reducing the technical challenges and operational risks involved in managing wallets and keys on their own.

 “This authorization not only reflects Hong Kong's institutional advantages as an international financial centre but also demonstrates the region's foresight in financial and technological innovation,” says Han Tongli, HGI’s chief executive officer and chief investment officer.

“The official launch of the Harvest Bitcoin Spot ETF and Harvest Ether Spot ETF enables HGI to offer a comprehensive management solution for digital assets. This not only meets the demand for high-growth assets but also allows investors direct participation in the rapidly evolving blockchain and digital asset opportunities, providing yet another key to entering the future AI-driven tech world.”

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