Hong Kong’s cryptocurrency industry experienced a significant development recently with the launch of six new Bitcoin and Ethereum-based exchange-traded funds (ETFs). These ETFs garnered a trading volume of over HK$87.5 million (US$11.2 million) on their first day of trading on April 30, as reported by The Block.
According to The Block, China Asset Management’s Bitcoin ETF achieved US$121.7 million in assets under management (AUM) on its debut day, while its Ethereum ETF recorded $20.4 million in AUM.
On April 30, six Bitcoin and Ethereum ETFs were officially launched for trading in Hong Kong. These ETFs are managed by China Asset Management, Harvest Global, Bosera, and HashKey.
China Asset Management’s Bitcoin ETF led the pack in terms of trading volume, reaching HK$37.16 million on the first day, according to data from the Hong Kong Stock Exchange. Additionally, its Ethereum ETF had a trading volume of HK$12.66 million.
The introduction of Bitcoin and Ethereum ETFs in Hong Kong is a significant milestone, but it does not provide new investment opportunities for mainland China investors, clarified Jack Wang, a data analyst at Bloomberg.
This development follows the approval of BTC and ETH ETFs by Hong Kong authorities, prompting Chinese asset management firms such as China Asset Management, Harvest Global Investments, and Bosera to prepare for the launch of their own cryptocurrency ETFs by April 30 through their subsidiaries in the region.
However, despite the close ties of these issuers with mainland China, Chinese citizens will not be able to participate in these ETFs due to a directive from the Chinese State Council. This directive, imposed in September 2021, prohibits financial institutions from engaging in cryptocurrency-related transactions.
Disclaimer: The views and opinions expressed in this article, as well as those of any individuals mentioned, are for informational purposes only and should not be considered financial or investment advice. Investing or trading cryptocurrencies carries a risk of financial loss.
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