The three Bitcoin exchange-traded funds (ETFs) in Hong Kong have surpassed HK$2 billion (about US$272 million) in assets under management since their launch earlier this year.
NEW: ðŸ‡ðŸ‡° Hong Kong #Bitcoin ETFs exceed HK$2 billion in assets under management.
China is preparing 🙌 image.twitter.com/GQZC1Z5UFC
— Bitcoin Magazine (@BitcoinMagazine) August 26, 2024
The milestone comes just a few months later Hong Kong approved Its first bitcoin ETFs, following similar moves in the US and Europe. ETFs provide exposure to Bitcoin prices without owning Bitcoin directly.
While volumes have been slower than those of US Bitcoin ETFs, assets under management have risen steadily, suggesting a growing institutional appetite for regulated Bitcoin products in Asia.
ChinaAMC’s Bitcoin ETF is the largest of the Hong Kong Bitcoin ETFwith over $142 million in net assets. Bosera Hashkey’s Bitcoin ETF comes in next with around $99 million in holdings, followed by Harvest’s Bitcoin ETF with $31 million. Together, the total Bitcoin holdings across the three Hong Kong ETFs amount to approximately 4,450 BTC, worth $272 million at current prices.
Industry observers believe innovations such as the ETFs’ redemption method could attract more capital over time. Hong Kong products allow for in-kind redemptions using actual bitcoins, unlike U.S. ETFs that only accept cash.
The growth indicates increasing Bitcoin adoption by institutional investors in Asia. If interest in Hong Kong spot Bitcoin ETFs continues at the current pace, they could emerge as a significant regional pool of Bitcoin demand.
Other Asian countries, including Singapore, Malaysia and South Korea, are also in the process of launching it. Bitcoin Spot ETFThis could further integrate Bitcoin into traditional finance across the continent.
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