Bitcoin and Ethereum Spot ETFs Approved for Hong Kong Listing
On April 23, 2024, Hong Kong witnessed a groundbreaking milestone in virtual assets as three asset management companies - ChinaAMC, Harvest Fund, and Bosera Fund - received approval to launch Bitcoin and Ethereum spot ETF products.
What are crypto spot ETFs?
These exchange-traded funds track cryptocurrency prices by holding substantial digital asset reserves, similar to gold spot ETFs. They represent Asia's first crypto spot ETF offerings, designed to:
- Simplify investment processes for mainstream investors
- Provide regulated exposure to crypto markets
- Enable trading through major securities platforms
- Support cash/crypto subscriptions (Hong Kong accounts required)
Key Market Restrictions
Per December 2023 guidelines from Hong Kong's SFC and HKMA:
- These products cannot be marketed to retail investors in restricted regions like mainland China
- Non-permanent residents holding Hong Kong ID cards may participate legally
Detailed Comparison of Three Crypto ETF Providers
Listing Date & Pricing
| Provider | Listing Date | Initial Price |
|---|---|---|
| ChinaAMC | April 30, 2024 | $1 |
| Harvest Fund | April 30, 2024 | $1 |
| Bosera Fund | April 30, 2024 | CME CF Bitcoin Index (0.0001x) |
Trading Requirements
- Lots: ChinaAMC/Harvest (100 shares), Bosera (10 shares)
- Minimum subscription: ChinaAMC/Bosera (10,000 shares), Harvest (50,000 shares)
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Fee Structures
| Provider | Management Fee |
|---|---|
| ChinaAMC | 0.99% |
| Harvest Fund | 0% (first month), then 0.3% |
| Bosera Fund | 0% (first 4 months), then 0.6% |
Index & Custodians
All track the CME CF Bitcoin Index but differ in custody:
- ChinaAMC/Harvest: OSL Digital Securities
- Bosera: Hash Blockchain
Trading Infrastructure
| Component | ChinaAMC | Harvest Fund | Bosera Fund |
|---|---|---|---|
| Exchange | OSL Exchange | OSL Exchange | HashKey Exchange |
| Market Makers | Vivienne Court Trading | CSC (HK), CLSA, Virtu Financial SG | Unannounced |
| Participating Dealers | Multiple including Victory Securities | Includes CSC (HK) additional partners | Standard selection |
Audit Partners
- ChinaAMC/Harvest: PwC
- Bosera: EY
Asset Management Scale
| Provider | Mainland AUM | Mainland ETFs | HK AUM | HK ETFs |
|---|---|---|---|---|
| ChinaAMC | $55.7B | 84 | $3.6B | 15 |
| Harvest Fund | $10.3B | 42 | $160M | 4 |
| Bosera Fund | $10.7B | 43 | $40M | 6 |
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FAQ Section
Q: Can mainland Chinese investors buy these ETFs?
A: No direct sales permitted, but Hong Kong ID holders may participate legally.
Q: What makes Hong Kong's crypto ETFs unique?
A: They represent Asia's first spot crypto ETFs with dual cash/crypto subscription options.
Q: How do management fees compare globally?
A: Hong Kong's 0.3-0.99% range is competitive versus US products (typically 0.25-1.5%).
Q: Which provider offers the lowest fees?
A: Harvest Fund provides the most competitive long-term fee structure at 0.3%.
Q: Are these ETFs physically backed?
A: Yes, all three offer physical redemption options with institutional-grade custodians.
Q: What trading currencies are supported?
A: ChinaAMC (USD/HKD/CNY), others (USD/HKD) - reflecting Hong Kong's multicurrency environment.