Asia's First Bitcoin and Ethereum Spot ETFs Go Live on HKEX
Hong Kong has made history by approving 6 Bitcoin and Ethereum spot ETFs, marking Asia's debut for such products. Issued by ChinaAMC (HK), Harvest Global, and Bosera International, these ETFs began trading today on the Hong Kong Stock Exchange (HKEX). Notably, Hong Kong surpasses the U.S. by also approving Ethereum spot ETFs, all tracking the CME CF Bitcoin Index and CME CF Ethereum Index.
Why This Launch Matters
- Bitcoin's 2024 Surge: Bitcoin hit a record high of $73,777 in March, with prices rising 40% YTD amid "Halving" volatility.
- Regulatory Milestone: ETFs are backed by Hong Kong's SFC, ensuring compliance and investor protection.
ETF Comparison Table
| ETF Name | Shares/Lot | Management Fee | Estimated Annual Expense Ratio | Trading Platform |
|---|---|---|---|---|
| ChinaAMC Bitcoin (03042) | 100 | 0.99% | 1.99% | OSL |
| ChinaAMC Ethereum (03046) | 100 | 0.99% | 1.99% | OSL |
| Harvest Bitcoin (03439) | 100 | 0.3% | 1.0% | OSL |
| Harvest Ethereum (03179) | 100 | 0.3% | 1.0% | OSL |
| Bosera Bitcoin (03008) | 10 | 0.6% | 0.85% | HashKey |
| Bosera Bitcoin (03009) | 10 | 0.6% | 0.85% | HashKey |
Spot ETFs vs. Futures ETFs vs. Direct Crypto Ownership
1. Spot ETFs
Pros:
- Tracks Bitcoin/Ethereum prices 1:1 (no rollover costs).
- Traded like stocks (no crypto wallet needed).
- Dual subscription: Cash or in-kind (crypto-to-ETF conversions).
- Cons: Limited to stock market hours.
2. Futures ETFs
- Underperform due to roll costs (e.g., Hong Kong futures ETFs lagged spot prices by 60% in 2023–2024).
3. Direct Crypto Purchase
- Pros: 24/7 trading, lower fees (~0.015–0.15%).
- Cons: Requires regulated exchanges (e.g., OSL, HashKey); withdrawal fees apply (~$10).
Why Investors Are Shifting to Spot ETFs
"Futures ETFs had a 60% tracking error last year. Spot ETFs eliminate this gap," notes Zhu Haokang, ChinaAMC's Digital Asset Director.
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FAQ Section
Q1: Can I redeem ETF units for actual Bitcoin?
A: Yes! Hong Kong allows in-kind redemptions via authorized brokers.
Q2: How do fees compare to U.S. Bitcoin ETFs?
A: Hong Kong ETFs charge 0.3–0.99% vs. U.S. averages of 0.2–0.8%.
Q3: Is Ethereum’s inclusion significant?
A: Absolutely—Hong Kong is the first major market to approve Ethereum spot ETFs.
Q4: What’s the minimum investment?
A: As low as 10 shares (~$200 for Bosera’s ETFs).
Q5: Are these ETFs safer than unregulated exchanges?
A: Yes—SFC oversight reduces risks like those seen in FTX/JPEX scandals.
Final Thoughts
Hong Kong’s ETF launch bridges traditional finance and crypto, offering transparency and ease of access. With Bitcoin’s halving fueling volatility, these ETFs provide a regulated avenue for exposure.