The three Hong Kong-based bitcoin ETFs have over HK$2 billion (about US$272 million) in assets under management since their launch earlier this year.
New: 🇭🇰 Hong Kong #Bitcoin ETF assets exceeded HK$2 billion in assets under management.
China is getting ready 🙌 pic.twitter.com/GQZC1Z5UFC
— Bitcoin Magazine (@BitcoinMagazine) August 26, 2024
The milestone comes just months after Hong Kong approved the first spot bitcoin exchange-traded funds, following similar moves in the United States and Europe. ETFs provide exposure to bitcoin prices without directly owning bitcoin.
Although trading volumes have been slower than U.S.-based bitcoin ETFs, assets under management have been steadily rising, suggesting growing institutional appetite for regulated bitcoin products in Asia.
ChinaAMC Bitcoin ETF Is The Largest Of Its Kind Hong Kong Bitcoin ETFswith over $142 million in net assets. Bosera Hashkey’s Bitcoin ETF comes in next with about $99 million in holdings, followed by the Harvest ETF with $31 million. Together, the three Hong Kong-based ETFs’ total Bitcoin holdings are about 4,450 BTC, worth $272 million at current prices.
Industry watchers believe that innovations such as the redemption method in ETFs could attract more capital over time. Hong Kong products allow for in-kind redemptions using actual bitcoin, unlike U.S. ETFs that rely solely on cash.
The growth points to increased adoption of Bitcoin by institutional investors in Asia. If interest in ETFs in Hong Kong continues at the current pace, it could emerge as a major regional hub for demand for Bitcoin.
Other Asian countries, including Singapore, Malaysia and South Korea, are also in the process of launching spot Bitcoin ETFs, which will further integrate Bitcoin into mainstream finance across the continent.
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