Hong Kong Crypto ETFs Touted to Create Opportunities for Chinese Investors

Jimmy Aki
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On April 30, Yimei Li, the CEO of China Asset Management, expressed that the introduction of Hong Kong crypto ETFs would “open the door” for individuals holding Chinese Yuan (RMB) who are seeking alternative investment options.

Hong Kong Crypto ETFs Rally Will Widen Market Participants

In an exclusive interview with Bloomberg Television, Yimei Li stated that she hopes for a “new opportunity” in the future for mainland Chinese investors to participate in the process of investing in cryptocurrency.

Crypto trading is currently banned in mainland China, which has grounded such activity. The launch of these funds in Hong Kong falls outside the scope of a program that gives Chinese investors access to some Hong Kong crypto ETFs.

However, the China Asset Management CEO highlighted that as the Hong Kong ETF market rallies, there could be multi-assets available for domestic investors in the future.

Meanwhile, in a separate interview, Han Tongli, the CEO of Harvest Global, the local unit of China Asset Management, told Bloomberg Television that the Hong Kong Securities and Futures Commission (SFC) would closely monitor the development of crypto ETFs.

“They want to contain the risk. As long as they’re comfortable with the risks, I think the market will open gradually,” he added.

It could be recalled that the SFC approved the first batch of spot Bitcoin and Ethereum ETFs on April 15 – a major leap that makes Hong Kong the first Asian country to embrace both crypto ETFs as a publicly traded financial asset.

According to local news media, Weixin, China Asset Management, Hashkey Capital Limited, and Bosera Capital had gotten the greenlight from SFC to launch six spot Bitcoin ETFs and Ethereum ETFs, which went live on April 30.

Hong Kong Crypto ETFs Recorded $6.3 Million Trading Volume So Far

Hong Kong Stock Exchange recently listed six new crypto ETFs. They are Bosera HashKey Bitcoin ETF (3008.HK), Bosera HashKey Ether ETF (3009.HK), ChinaAMC Bitcoin ETF (3042.HK), ChinaAMC Ether ETF (3046.HK), Harvest Bitcoin Spot ETF (3439.HK), and Harvest Ether Spot ETF (3179.HK).

One distinguishing feature of these Hong Kong-listed crypto ETFs is their in-kind trading capability. This means investors can buy these ETFs using Bitcoin or Ethereum and convert them back to cash or the respective cryptocurrencies, offering a seamless two-way investment opportunity.

On their first trading day, the six new Bitcoin and Ether ETFs in Hong Kong collectively recorded a trading volume of approximately HK$49.4 million ($6.3 million) during the morning session.

China Asset Management’s “ChinaAMC Bitcoin ETF” led the trading volume with HK$22.97 million, followed by the ChinaAMC Ether ETF with HK$10.47 million.

Harvest’s spot Bitcoin ETF had a trading volume of HK$8.11 million, while its Ether ETF recorded HK$2.18 million.

Bosera HashKey’s Bitcoin ETF saw HK$3.59 million in trading volume, with its Ether ETF at HK$1.53 million during the morning session.

Comparatively, when the 11 spot Bitcoin ETFs were launched in the U.S. in January, they generated a first-day trading volume of approximately $4.6 billion, with Grayscale Bitcoin fund (GBTC) recording a streak of outflows for 72 days since its approval – the first in ETF history.

Meanwhile, Samson Mow, CEO and Bitcoin pioneer shared his views on X about the potential impact of ETFs in Hong Kong, stating that they “are going to be big.

Mow highlighted the limited investment options for Chinese investors, noting that the country’s three stock exchanges experienced declines in 2023, and the real estate market remained in turmoil.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.