Six spot bitcoin and ether exchange traded funds (ETFs) gained in their Hong Kong debut on Tuesday, with the three bitcoin ETFs climbing more than 3% in early trade, reflecting Asian investor enthusiasm for cryptocurrencies.
The debuts mark the first launch of spot cryptocurrency ETFs in Asia and come just three months after the U.S. launched its first ETFs to track spot bitcoin.
Spot bitcoin ETFs launched by China AMC, Harvest and Bosera had gained roughly 2.5% as of 2:21 GMT. The three ether ETFs managed by the asset managers also rose.
Bitcoin climbed about 1%.
Cryptocurrency is banned in mainland China, but Hong Kong has been promoting itself as a global digital asset hub, part of a drive to maintain its allure as a financial center.
Christina Choi, an executive director of the Securities and Futures Commission (SFC), hailed the product debut as a milestone in Hong Kong’s ETF market, but also flagged risks.
“Virtual assets are quite speculative and very volatile … so I remind you that such assets are not suitable for all investors,” Choi told Tuesday’s launch event.
The ETF launch also put Hong Kong in direct competition with the United States for crypto investors.
The U.S. spot bitcoin ETFs have drawn roughly $12 billion in net inflows, contributing to a surge in bitcoin’s price earlier this year. But U.S. regulators have not yet approved ETFs that track spot ether prices.
COMPETITION
Another difference is that Hong Kong’s crypto ETFs adopt the so-called “in-kind” transaction mechanism that allows investors to buy and sell ETF shares using the relevant crypto tokens instead of cash.
Six spot bitcoin and ether exchange traded funds (ETFs) gained in their Hong Kong debut on Tuesday, with the three bitcoin ETFs climbing more than 3% in early trade, reflecting Asian investor enthusiasm for cryptocurrencies.
The debuts mark the first launch of spot cryptocurrency ETFs in Asia and come just three months after the U.S. launched its first ETFs to track spot bitcoin.
Spot bitcoin ETFs launched by China AMC, Harvest and Bosera had gained roughly 2.5% as of 2:21 GMT. The three ether ETFs managed by the asset managers also rose.
Bitcoin climbed about 1%.
Cryptocurrency is banned in mainland China, but Hong Kong has been promoting itself as a global digital asset hub, part of a drive to maintain its allure as a financial center.
Christina Choi, an executive director of the Securities and Futures Commission (SFC), hailed the product debut as a milestone in Hong Kong’s ETF market, but also flagged risks.
“Virtual assets are quite speculative and very volatile … so I remind you that such assets are not suitable for all investors,” Choi told Tuesday’s launch event.
The ETF launch also put Hong Kong in direct competition with the United States for crypto investors.
The U.S. spot bitcoin ETFs have drawn roughly $12 billion in net inflows, contributing to a surge in bitcoin’s price earlier this year. But U.S. regulators have not yet approved ETFs that track spot ether prices.
COMPETITION
Another difference is that Hong Kong’s crypto ETFs adopt the so-called “in-kind” transaction mechanism that allows investors to buy and sell ETF shares using the relevant crypto tokens instead of cash. – Reuters
