Hong Kong’s three spot Bitcoin ETFs have reached over HK$2 billion in assets, reflecting growing institutional demand for regulated Bitcoin in Asia.
Since their introduction earlier this year, the three spot Bitcoin exchange-traded funds (ETFs) in Hong Kong have managed assets exceeding HK$2 billion, or roughly $272 million.
The accomplishment follows similar U.S. and European actions and was made only months after Hong Kong approved its first spot bitcoin ETFs. Without really holding Bitcoin, the ETFs offer exposure to its price.
Although volumes have not kept up with U.S. Bitcoin ETFs, assets under management have been rising quickly. This indicates that institutional interest in regulated Bitcoin products is growing in Asia.
With more than $142 million in net assets, the ChinaAMC Bitcoin ETF is the biggest of the Hong Kong Bitcoin ETFs. Next in line with approximately $99 million in holdings is Bosera Hashkey’s Bitcoin ETF, trailed by Harvest Bitcoin ETF with $31 million. At current pricing, all three Hong Kong ETFs combined have about 4,450 BTC in total holdings, or $272 million.
Experts in the field anticipate that breakthroughs such as the ETF redemption mechanism may eventually draw in further funding. Unlike U.S. ETFs that only accept cash, Hong Kong products enable in-kind redemptions using real Bitcoin.
The increase suggests that institutional investors in Asia are adopting Bitcoin at an increasing rate. Should the present rate of interest in Hong Kong’s spot Bitcoin ETFs continue, they may become a sizable regional source of demand for Bitcoin.
There are plans to introduce Bitcoin ETFs on the spot in other Asian nations like Singapore, Malaysia, and South Korea. This can further incorporate Bitcoin into the continent’s mainstream financial system.