Hong Kong’s new Bitcoin and Ethereum exchange-traded funds (ETFs) have faced a tough challenge after the successful launch of spot Bitcoin ETFs in the United States. While the Hong Kong ETFs garnered a trading volume of $12 million on their first day, it pales in comparison to the $4.6 billion trading volume achieved by the US ETFs. The Hong Kong Stock Exchange (HKEX) reported relatively flat performance and interest in the six crypto ETFs managed by China Asset Management, Harvest Global, Bosera, and HashKey. The Bosera HashKey Bitcoin ETF recorded 249,000 HK$ in trading volume, while the Bosera HashKey Ether ETF had 99,000 HK$ in trading volume. However, the China Asset Management Bitcoin ETF fared better with 4.6 million HK$ in trading volume, and its Ether ETF recorded the same amount. Prior to the launch, CAM attracted $140 million in subscription size for its spot Bitcoin and Ethereum ETFs. The HKEX had previously experienced investor interest in its cryptocurrency futures ETFs, and its three “VA Futures ETFs” saw $529 million in net inflows in Q1 2024. Local fund managers and brokerages in Hong Kong are offering fee exemptions to attract investors to the new crypto ETFs. Harvest is waiving its management fee for six months, while Bosera has forgone its management fee for four months. It is also possible that investors in mainland China may have access to these new products, although KYC policies related to mainland Chinese identity cards could pose a challenge.
Hong Kong's Bitcoin and Ether ETFs face challenging debut during initial day of trading