Hong Kong launches Asia’s 1st ETFs

Six bitcoin and ether exchange traded funds (ETFs) made a promising debut in Hong Kong, marking the first launch of spot cryptocurrency ETFs in Asia, Reuters reported on Tuesday.

The three bitcoin ETFs, launched by China AMC, Harvest, and Bosera, saw a midday gain of roughly 2.6 per cent, reflecting the growing interest of Asian investors in cryptocurrency assets.

Despite cryptocurrencies being banned in mainland China, Hong Kong is positioning itself as a global digital asset hub.

Christina Choi, an executive director of the Securities and Futures Commission (SFC), hailed the debut as a milestone in Hong Kong’s ETF market, but also warned of the volatility and speculative nature of virtual assets.

The launch puts Hong Kong in direct competition with the United States for crypto investors.

Han Tongli, CEO of Harvest Global Investments, expressed optimism about the potential of Hong Kong in developing crypto assets, citing the better-than-expected inflow on the first day.

He also suggested that crypto ETFs could eventually be available to mainland Chinese investors, provided the products are deemed risk-controllable.