April 30 marked the debut of Hong Kong's six virtual asset ETFs, achieving a combined first-day trading volume of HK$87.58 million (US$12 million). For Web3-native users, purchasing spot ETFs represents a form of "TradFi mining," unlocking the value and momentum of traditional markets and assets.
6 ETFs Achieve HK$87.58 Million in Debut Trading
On April 30, three Bitcoin spot ETFs from China Asset Management, Bosera HashKey, and Harvest International initially surged over 3% before settling at a 1.5% gain. Meanwhile, three Ethereum ETFs rose 1% in early trading but dipped into negative territory by afternoon. Within the first 2.5 hours, the six funds collectively traded nearly HK$50 million.
Key trading volumes:
- ChinaAMC Bitcoin ETF (3042 HK): HK$37.16 million
- ChinaAMC Ethereum ETF (3046 HK): HK$12.66 million
- Bosera HashKey Bitcoin ETF (3008 HK): HK$12.44 million
- Bosera HashKey Ethereum ETF (3009 HK): HK$2.48 million
- Harvest Bitcoin Spot ETF (3439 HK): HK$17.89 million
- Harvest Ethereum Spot ETF (3179 HK): HK$4.95 million
For context, U.S. Bitcoin ETFs recorded a $4.6 billion debut on January 10—383 times Hong Kong's first-day volume.
Competitive Fee Structures
Management fees vary sharply among issuers:
- Harvest International: 0.30% (waived for holdings under 6 months)
- Bosera International: 0.60% (waived for 4 months post-launch)
- ChinaAMC: 0.99%
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Accessibility for "Hong Kong Drifters" and Web3 Natives
HashKey confirmed that non-residents meeting local compliance (e.g., KYC) may subscribe to Bosera HashKey’s ETFs. Over 1.5 million "Hong Kong drifters" (mainland Chinese expats) with local IDs, addresses, and bank accounts can participate.
Key differentiator: Hong Kong’s ETFs support physical in-kind subscriptions, allowing direct token-to-ETF conversions without fiat intermediation. This appeals to crypto holders seeking mainstream asset classification.
Adoption Challenges
Despite aggressive outreach to crypto whales, early adoption via实物申购 (physical subscriptions) remains limited. Victory Securities’ manual email/phone order process also highlights operational friction, though optimizations are expected.
Strategic Implications for Hong Kong
Industry leaders emphasize symbolic impact:
- Zhu Haokang (ChinaAMC): "This elevates Hong Kong’s competitiveness as a global financial hub."
- Weng Xiaoqi (HashKey Group): "ETF launches signal traditional finance’s full embrace of virtual assets—institutional inflow is the real game-changer."
Antoni Trenchev (Nexo) notes Hong Kong’s lead over rivals Singapore and Dubai in regulatory innovation. While volume gaps with the U.S. persist, the move asserts Hong Kong’s ambition to reclaim crypto pricing influence.
FAQ
Q: Can non-Hong Kong residents invest in these ETFs?
A: Yes, if they pass local compliance checks (e.g., KYC) and hold eligible accounts.
Q: How do physical subscriptions benefit crypto holders?
A: They allow converting tokens directly into ETF shares, bypassing fiat conversion and leveraging traditional market exposure.
Q: What’s the long-term outlook for Hong Kong’s ETF market?
A: Analysts project it could reach 20% of U.S. ETF scale (~$100 billion), driven by institutional adoption.
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Disclaimer: This content is informational only and not investment advice. Comply with local regulations before trading.