Author: Nian Qing, ChainCatcher
On April 15, China Asset Management (Hong Kong), Bosera Asset Management (International), and Harvest Global Investments announced conditional approval from Hong Kong's Securities and Futures Commission (SFC) to issue Bitcoin and Ethereum spot ETFs. However, Bosera and Harvest later retracted their announcements. As of publication, the SFC had not officially listed the approved virtual asset ETFs on its website.
The same evening, Hong Kong's SFC updated its roster of licensed virtual asset management firms, adding Bosera Funds (International) Limited. Earlier reports by Tencent Finance suggested four Bitcoin spot ETF approvals were planned, including Harvest Global, China AMC, Bosera, and Value Partners—the latter currently absent from the SFC's list.
Following the U.S. SEC's approval of 11 Bitcoin spot ETFs on January 11, Hong Kong advances as the next jurisdiction to greenlight Bitcoin and Ethereum spot ETFs.
Profiles of the First Approved Issuers
Harvest Global Investments
- A subsidiary of Harvest Fund Management, established in 2008 with $200B+ AUM.
- Partnered with OSL in November 2023 to explore tokenized retail funds, launching Hong Kong’s first tokenized fund by December.
- Applied for Hong Kong’s first Bitcoin spot ETF on January 26, 2024; secured virtual asset Type 9 license on April 10.
China Asset Management (Hong Kong)
- Overseas arm of China AMC (est. 2008), managing $266B+ globally.
- Collaborated with HashKey Exchange and Hamsa in November 2023 for Web3 innovations.
- Received Type 9 license on April 10.
Bosera Funds (International)
- Offshore subsidiary of Bosera Funds, managing ~$200B.
- Signed a strategic agreement with HashKey Capital on April 6 for virtual asset ETFs and blockchain tech.
- Secured Type 9 license on April 15.
Additional Players:
Value Partners (partnering with VSFG) and SPC南东英 (which listed Asia’s first crypto futures ETFs in 2022) are among over 20 firms exploring spot ETFs.
ETF Custody Services: The Emerging Frontier
Hong Kong’s stringent virtual asset regulations mandate partnerships between traditional financial institutions and licensed virtual asset providers. Only OSL Digital Securities and Hash Blockchain Limited hold SFC-approved exchange licenses.
Key Custodians:
| Provider | Key Details |
|---|---|
| OSL | Partnered with China AMC and Harvest; holds SFC Type 1, 4, and 9 licenses. |
| HashKey Capital | Collaborating with Bosera; upgraded license allows retail virtual asset funds. |
| New Huo Asset | Offers full discretionary account services; operates 6 compliant funds. |
| VSFG | Working with Value Partners; launched Hong Kong’s first regulated Bitcoin fund. |
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Market Impact and Accessibility
Approved Bitcoin spot ETFs are expected to list on HKEX by late April, becoming Asia’s first regulated offerings. While U.S. ETFs surpassed $200B in volume, analysts project modest initial inflows for Hong Kong:
- Eric Balchunas (Bloomberg): $500M due to smaller market size and higher fees (1-2%).
- Jupiter Zheng (HashKey): $500M initially, potentially $1B by year-end.
- Tony Luk (New Huo): $1B AUM initially, growing to $2B as liquidity improves.
Mainland Investors:
Direct purchases are prohibited for Chinese residents unless qualified under Hong Kong investor rules. Future mechanisms akin to Stock Connect may enable access.
FAQ
Q: Can U.S. investors buy Hong Kong’s Bitcoin ETFs?
A: Yes, through international brokerage accounts, subject to compliance checks.
Q: What are the custody risks?
A: Licensed providers like OSL and HashKey adhere to SFC’s strict security and compliance standards.
Q: How do fees compare to U.S. ETFs?
A: Hong Kong’s 1-2% fee is higher than U.S. averages (0.25-0.80%), reflecting smaller liquidity pools.
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Disclaimer: ChainCatcher advises rational engagement with blockchain technology. Content herein is informational and not investment advice. Report sensitive material via the platform’s “Report” function.