Bitcoin News, Crypto News
Hong Kong’s Bitcoin ETFs Surpass HK$2 Billion Milestone, Driven by OSL
Aug
Milestone Achieved: Hong Kong’s Bitcoin ETFs Surpass HK$2 Billion
To enhance its position on the global financial stage, Hong Kong must attract significant investments and engage both retail and institutional participants.
Hong Kong’s cryptocurrency investment environment has marked a notable development, with the combined management of Bitcoin exchange-traded funds (ETFs) exceeding HK$2 billion (around $256 million). This milestone reflects an increasing interest and trust in digital currencies in the region, despite a gradual start compared to the more robust US market.
Recent data from SoSo Value indicates that the three spot Bitcoin ETFs in Hong Kong have seen a net inflow of approximately 247 BTC this week, elevating their total holdings to about 4,450 BTC, an increase of 5.9%. The current total asset management for these ETFs is around HK$2.113 billion.
Analyzing the asset distribution reveals that two Bitcoin ETFs, managed by China Asset Management and Harvest Asset Management, dominate the industry. These funds, in partnership with OSL, manage HK$1.337 billion in assets, representing over 63% of the Bitcoin ETF market in Hong Kong. The third ETF, which is not linked to OSL, has assets amounting to HK$776 million, comprising roughly 42% of the market.
The leading position of OSL highlights investor confidence in its management while also pointing out the limited options available to investors in the Hong Kong Bitcoin ETF segment.
Comparative Underperformance Against US Bitcoin ETFs
Despite recent progress, Hong Kong’s Bitcoin ETFs have not matched the performance of their US counterparts. Upon launching on April 30, these ETFs initially attracted $262 million in assets under management (AUM), primarily from subscriptions before the market debut.
However, only about $14 million actually flowed into the market during the first week, a significant contrast to the billions that US Bitcoin ETFs received earlier in January.
This discrepancy underlines the challenges Hong Kong must overcome to establish itself as a premier destination for cryptocurrency investments.
According to Bloomberg ETF analyst Rebecca Sin, the in-kind ETF creation model in Hong Kong represents a compelling opportunity for increasing AUM and trading volume. Yet, the market still trails behind the US in terms of attracting investor interest and capital.
