Hong Kong Bitcoin ETFs Exceed $250M in Assets Under Management

August 26, 2024 05:56 PM AEST | By Team Kalkine Media

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Hong Kong Bitcoin ETFs Exceed $250M in Assets Under Management — Image source: shutterstock

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Hong Kong's spot Bitcoin exchange-traded funds (ETFs) have seen their assets under management (AUM) exceed 2 billion Hong Kong dollars (approximately $256 million). Despite this significant milestone, these ETFs have had a slower start compared to their counterparts in the United States.

According to data from SoSo Value, Hong Kong's three spot Bitcoin ETFs collectively grasp around 4,450 {Bitcoin} (BTC), reflecting a recent net inflow of approximately 247 BTC over the past week. The total AUM for these ETFs is now approximately HK$2.1 billion ($269 million). Among these, ETFs managed by China Asset Management and Harvest Asset Management, in partnership with the digital asset trading platform OSL, account for over HK$1.3 billion ($167 million) of this total. The third spot Bitcoin ETF, not affiliated with OSL,HK$776 million ($99.5 million), representing about 42% of the market.

In comparison, the U.S. market offers a broader range of spot Bitcoin ETF options, with 11 available products. Despite recent inflows, Hong Kong's ETFs have lagged behind their U.S. counterparts. When the Hong Kong ETFs launched on April 30, they attracted a total of $262 million in inflows, primarily before the listings officially commenced. Actual asset inflows during the first week amounted to $14 million, a stark contrast to the substantial capital influx seen in the U.S. market when its spot Bitcoin ETFs launched in January.

This difference underscores the challenges Hong Kong faces in establishing itself as a major hub for cryptocurrency assets. Bloomberg ETF analyst Rebecca Sin points out that Hong Kong's in-kind ETF creation model presents a unique opportunity to boost both AUM and trading volume. However, the city has yet to match the level of investor engagement and capital flow seen in the U.S. market.

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