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Hong Kong launches Asia’s first spot ETFs on Bitcoin and Ethereum

The decision could help increase liquidity in the cryptocurrency market and broaden access to these assets.

Date: 2024-04-30 Author: Łukasz Michałek
Hong Kong launches Asia’s first spot ETFs on Bitcoin and Ethereum

The Hong Kong Stock Exchange today announced the launch of new Bitcoin and Ethereum exchange-traded funds (ETFs).

According to an official announcement from Hong Kong Exchanges and Clearing Limited (HKEX), Bitcoin and Ethereum ETFs were accepted on Tuesday, April 30, marking the launch of the first virtual asset (VA) ETFs in Asia.

Expanding investment opportunities in virtual assets

The announcement stated that investor interest in virtual asset ETFs has increased significantly since the launch of VA Futures ETFs in late 2022.

By the first quarter of 2024, the combined average daily turnover of the three VA Futures ET Fs listed in Hong Kong rose to $51.3 million from $8.9 million in the previous year. These ETFs also attracted net inflows of $529 million during the same period.

The range of exchange traded products (ETPs) on the Hong Kong exchange continued to grow, with ETFs and leveraged and inverse products (L&I products) among the fastest growing segments.

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“The launch of the Hong Kong VA ETFs is the latest exciting addition to HKEX’s diverse and vibrant ecosystem of ETPs, providing investors with access to a new asset class,” said Brian Roberts, HKEX director of equity product development.

“Following the success of the VA Futures ETFs, the listing of the first Asian VA ETFs will further enhance product diversity and liquidity in the Hong Kong ETP market,” Roberts said.

The race for Bitcoin and Ethereum ETFs in Hong Kong

China Asset Management Co. (China AMC), Harvest Global Investments, and Bosera International and HashKey Capital are issuers of ETFs for Bitcoin and Ethereum. They could lead a new round of ETF competition, according to a previous report.

In 2023 and the first quarter of 2024. HKEX introduced 16 new ETFs, bringing the total number of offerings to 179. HKEX planned to diversify its product offerings and strengthen its position in the global market.

“We look forward to continuing to work closely with our stakeholders to bring more products to our international market,” Roberts said.

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Łukasz Michałek
Łukasz Michałek
Founder of the rapidly developing cryptocurrency channel "Biblia Kryptowalut" on YouTube. He also co-creates the Arena Trading group with Marek. Łukasz is fascinated and passionate about blockchain technology and cryptocurrencies, which constitute the central element of his activity in the cryptocurrency industry.
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