Hong Kong's Spot Bitcoin ETFs Garner $230 Million in AUM During Debut Week

According to data released by the Hong Kong Stock Exchange, the combined AUM of virtual asset spot ETFs, encompassing Bitcoin and Ethereum, stands at $273 million. This figure notably surpasses the $152 million AUM of virtual asset futures ETFs by nearly 80%.

China Asset Management Co. (China AMC) emerged as a frontrunner post-launch, with $116 million secured for Bitcoin ETFs and $19 million for Ethereum ETFs.

Meanwhile, Bosera International and HashKey Capital's Bitcoin ETFs amassed $57 million in AUM, with $11.6 million attributed to Ethereum ETFs.

Harvest Global Investment's Bitcoin ETF also achieved approximately $57 million in AUM, accompanied by $11.5 million for its Ethereum counterpart.

Collectively, the three spot Bitcoin ETFs attained $230 million in AUM, while the trio of Ethereum ETFs accrued approximately $43 million.

Sui Chung, CEO of CF Benchmarks, a subsidiary of Kraken, anticipates that despite a subdued start, crypto ETFs in Hong Kong will surpass $1 billion in assets under management by the close of 2024.

Subheading: BitGo Advocates Preferred Taxation and Regulation for Hong Kong ETFs

But Hobeng "HB" Lim, Managing Director of BitGo's Asia-Pacific region, shared insights on Hong Kong's ETF landscape, noting that certain investors may favor Hong Kong's offerings over similar products in North America or Europe.

"Given factors such as more favorable tax treatment or regulatory constraints in their home countries, some investors may opt against trading spot crypto ETFs listed in North America or Europe," stated Lim.

He emphasized that Hong Kong's spot crypto ETFs offer an alternative for such investors, who may perceive Hong Kong as offering advantages concerning taxes and regulatory accessibility.

While acknowledging Hong Kong's robust regulatory framework for virtual assets, Lim highlighted areas for enhancement, particularly advocating for a regulatory framework tailored for independent virtual asset custodians to provide expanded custody options. Additionally, he suggested refinements to Hong Kong's proposed regulations governing over-the-counter (OTC) trading of virtual assets.