Hong Kong Bitcoin ETFs Top HK$2 Billion AUM, Lagging Behind US Market

Hong Kong Bitcoin ETFs See Steady Inflows, Yet Struggle to Match US Growth

Hong Kong Bitcoin ETFs – Hong Kong’s spot Bitcoin exchange-traded funds (ETFs) have recently achieved a significant milestone, surpassing 2 billion Hong Kong dollars (approximately $256 million) in assets under management (AUM). Despite this growth, these ETFs have experienced a slower uptake compared to their counterparts in the United States, highlighting the challenges Hong Kong faces in establishing itself as a global hub for cryptocurrency investments.

According to data from SoSo Value, the three spot Bitcoin ETFs in Hong Kong saw a net inflow of around 247 BTC over the past week, bringing their total holdings to approximately 4,450 BTC. This recent inflow has increased the total AUM for these ETFs to about HK$2.1 billion ($269 million).

Dominance of China Asset Management and Harvest Asset Management

The ETFs managed by China Asset Management and Harvest Asset Management, in collaboration with the digital asset trading platform OSL, account for a substantial portion of the market, with more than HK$1.3 billion ($167 million) in AUM. The third spot Bitcoin ETF, which operates independently of OSL, holds HK$776 million ($99.5 million), representing about 42% of the market share.

While these figures indicate a growing interest in Bitcoin ETFs among Hong Kong investors, they also underscore the limited options available in the region compared to the 11 spot Bitcoin ETFs currently available in the US market.

Comparing Hong Kong’s and US Markets

When Hong Kong’s Bitcoin ETFs launched on April 30, they garnered a total of $262 million in inflows during their first week, with the majority of these funds subscribed before the ETFs officially went live. However, actual asset inflows during the first week were a modest $14 million, a stark contrast to the billions of dollars that poured into US spot Bitcoin ETFs when they debuted in January.

This disparity between the two markets highlights the challenges Hong Kong faces in attracting the same level of investor interest and capital inflows as seen in the US. As Bloomberg ETF analyst Rebecca Sin pointed out, Hong Kong’s in-kind ETF creation model offers a unique opportunity to increase both AUM and trading volume. However, the city has yet to match the enthusiasm and investment levels observed in the US market.

FAQ: Hong Kong’s Bitcoin ETFs