To effectively compete with their US counterparts, spot Bitcoin ETFs in Hong Kong must entice a greater number of retail and institutional investors. The spot Bitcoin ETFs in the region have exceeded 2 billion Hong Kong dollars (approximately $256 million) in assets under management (AUM).
These ETFs in Hong Kong have had a comparatively slow initial performance relative to those in the United States. According to data from SoSo Value, the three spot BTC ETFs in Hong Kong recorded a net inflow of around 247 BTC over the past week, pushing their total holdings to roughly 4,450 BTC. The total AUM of the ETFs is now estimated at about HK$2.1 billion ($269 million).
Third Hong Kong Bitcoin ETF Holds HK$776 Million, 42% Market Share
ETFs from China Asset Management and Harvest Asset Management, in collaboration with the digital asset trading platform OSL, represent over HK$1.3 billion ($167 million) in AUM. The third spot Bitcoin ETF, which operates independently from OSL, has HK$776 million ($99.5 million) in holdings, accounting for about 42% of the market.
Compared to the 11 options available in the US market, Hong Kong investors have limited selections to gain BTC exposure.
A Slower Trajectory Than The Us
Despite recent inflows, the spot Bitcoin ETFs in Hong Kong have lagged behind their US equivalents. When these ETFs launched on April 30, they garnered a total of $262 million in inflows within their first week, with most of this amount subscribed prior to the actual listing.
In reality, asset inflows during the inaugural week were only $14 million, a sharp contrast to the billions that streamed into US spot Bitcoin ETFs at their debut in January.
This contrast clearly shows the difficulties that Hong Kong faces in establishing itself as a leading global hub for cryptocurrency investments. As Bloomberg ETF analyst Rebecca Sin points out, the city’s in-kind ETF creation model presents a distinctive opportunity to enhance AUM and trading volume. However, Hong Kong has yet to match the US market in terms of investor interest and capital inflows.
Hong Kong’s Spot Bitcoin ETFs See Significant Inflows, Led by ChinaAMC
Hong Kong’s spot Bitcoin ETFs experienced their largest inflow of funds in over a month today, showing a rising interest in Bitcoin investment vehicles across Asia. On August 22nd, the ChinaAMC Bitcoin ETF received 274 Bitcoin, valued at approximately $15 million, marking its biggest single day of inflows since July 12th. In contrast, the other two Hong Kong spot Bitcoin ETFs, Bosera Hashkey and Harvest, did not see any inflows today.
Earlier this year, Hong Kong approved its first three spot Bitcoin ETFs, following the introduction of similar products in the U.S. and Europe. These ETFs enable investors to gain exposure to Bitcoin prices without needing to handle the asset directly. Although the trading volumes of Hong Kong’s Bitcoin ETFs are significantly lower than those in the U.S., inflows have been consistently increasing. The ChinaAMC Bitcoin ETF stands as the largest among Hong Kong’s offerings, commanding over $141 million in net assets, while the Bosera Hashkey and Harvest Bitcoin ETFs manage approximately $99 million and $30 million, respectively.
The total assets under management across the three Hong Kong spot Bitcoin ETFs amount to about 4,450 BTC, valued near $270 million. While still relatively modest, the rising inflows signify a growing interest and adoption of Bitcoin among Asian institutional investors. As Bitcoin evolves into a recognised asset class, both Asian and global investors are increasingly seeking regulated exposure through instruments like spot ETFs. For the latest updates on this story and other cryptocurrency market news, keep following DeyThere.
