The launch of spot Bitcoin and Ethereum exchange-traded funds (ETFs) in Hong Kong on April 30 has successfully attracted more than $200 million in funds. Arkham Intelligence data shows that Bosera HashKey's ETF funds have accumulated 964 Bitcoins and 4,290 Ethereums, reaching a total asset under management of $71.94 million.

Enthusiasm Surrounding ETFs in Hong Kong

Bloomberg's senior ETF analyst Eric Balchunas reported that ChinaAMC's spot Bitcoin and Ethereum ETF funds gathered assets totaling $123.61 million. Harvest Global's ETF funds' asset management data has not been updated yet, but they have reached a total turnover of $23 million.

The assets requested for these ETF funds are relatively modest compared to their U.S. counterparts, with spot Bitcoin ETF funds in the U.S. drawing about $4 billion in assets under management in the first week. Balchunas emphasized the significance of the numbers in Hong Kong and highlighted that ChinaAMC Bitcoin ETF was among the top performers compared to other ETFs launched in the last three years.

Moreover, Hong Kong's crypto ETF funds offer the unique feature of allowing investors to invest directly using Bitcoin and Ethereum, which is not available in the U.S. ETFs.

Hong Kong's Position in the Crypto Market

OSL, a regulated crypto exchange in Hong Kong, conducted a survey revealing that 76.9% of participants planning to invest in the new ETF funds. Gary Tiu, OSL's general manager and head of regulatory affairs, expressed optimism about the investor sentiment, indicating the growing acceptance of crypto assets in the region.

Despite the positive outlook, Hong Kong's crypto ETF funds are currently accessible only to residents, not including Chinese investors unless they have a Hong Kong residence permit.