Hong Kong Bitcoin ETFs Hit $2 Billion in AUM

Hong Kong’s three Bitcoin exchange-traded funds (ETFs) have surpassed HK$2 billion (about $272 million) in assets under management since launching earlier this year.

NEW: 🇭🇰 Hong Kong #Bitcoin ETFs exceed $2 billion in assets under management.

China is getting ready 🙌 pic.twitter.com/GQZC1Z5UFC

— Bitcoin Magazine (@BitcoinMagazine) August 26, 2024

The milestone comes just months after Hong Kong approved its first spot bitcoin ETFs, following similar moves in the US and Europe. ETFs provide exposure to Bitcoin prices without directly owning Bitcoin.

While volumes have been slower than US Bitcoin ETFs, assets under management have steadily increased. This suggests a growing institutional appetite for regulated Bitcoin products in Asia.

The ChinaAMC Bitcoin ETF is the largest Hong Kong Bitcoin ETF with over $142 million in net assets. Next is the Bosera Hashkey Bitcoin ETF with about $99 million in holdings, followed by the Harvest Bitcoin ETF with $31 million. Together, the total Bitcoin holdings in the three Hong Kong ETFs amount to about 4,450 BTC, worth $272 million at current prices.

Industry watchers believe that innovations such as the ETF redemption method could attract more capital over time. Hong Kong products allow in-kind redemptions using real Bitcoin, unlike US cash-only ETFs.

The increase indicates the growing adoption of Bitcoin by institutional investors in Asia. If interest in Hong Kong spot Bitcoin ETFs continues at their current pace, they could emerge as a significant regional pool of Bitcoin demand.

Other Asian countries such as Singapore, Malaysia and South Korea are also in the process of launching spot Bitcoin ETFs. This could further integrate Bitcoin into mainstream finance across the continent.