The three spot Bitcoin exchange-traded funds (ETFs). Hong-Kong have surpassed HK$2 billion (approximately $272 million) in assets under management since launching earlier this year.
NEW: ðŸ‡ðŸ‡° Hong Kong #Bitcoin ETFs manage more than HK$2 billion in assets.
China is preparing 🙌 photo.twitter.com/GQZC1Z5UFC
— Bitcoin Magazine (@BitcoinMagazine) August 26, 2024
The milestone comes just months after Hong Kong approved its first spot bitcoin ETFs, following similar moves in the U.S. and Europe. The ETFs offer exposure to bitcoin prices without owning bitcoin directly.
While volumes are lower than US Bitcoin ETFs, assets under management have been steadily increasing, suggesting growing institutional demand for regulated Bitcoin products in Asia.
The ChinaAMC Bitcoin ETF is the largest of the Bitcoin ETFs in Hong Kongwith over $142 million in net assets. Bosera Hashkey’s Bitcoin ETF comes in second with around $99 million in holdings, followed by Harvest Bitcoin ETF with $31 million. Together, the total Bitcoin holdings of the three Hong Kong ETFs stand at around 4,450 BTC, worth $272 million at current prices.
Industry observers believe that innovations such as the ETF redemption method could attract more capital over time. The Hong Kong products allow in-kind redemptions using real Bitcoin, unlike U.S. ETFs that hold only cash.
The growth signals increasing acceptance of Bitcoin by institutional investors in Asia. If interest in Hong Kong’s spot Bitcoin ETFs continues at their current pace, they could become a significant regional pool of Bitcoin demand.
Other Asian countries, such as Singapore, Malaysia and South Korea, are also planning to spot Bitcoin ETFsThis could further integrate Bitcoin into the mainstream financial world across the continent.