<img src="https://bitcoinmagazine.com/.image/c_fit%2Ch_800%2Cw_1200/MTc5Mjk3ODU1NjA5NTEzNjY3/hong-kong-securities-regulator-promises-to-regulate-crypto-investment-funds.jpg” />
The three bitcoin exchange-traded funds (ETFs) in Hong Kong have surpassed HK$2 billion (about $272 million) in assets under management since their launch earlier this year.
<blockquote class="twitter-tweet”>
NEW: Hong Kong twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin ETFs exceed HK$2 billion in assets under management.
China is preparing image.twitter.com/GQZC1Z5UFC
— bitcoin Magazine (@BitcoinMagazine) twitter.com/BitcoinMagazine/status/1827989373775696046?ref_src=twsrc%5Etfw”>August 26, 2024
The milestone comes just months after Hong Kong approved its first spot bitcoin ETFs, following similar moves in the United States and Europe. ETFs offer exposure to bitcoin prices without owning bitcoins directly.
While volumes have been slower than those of US bitcoin ETFs, assets under management have risen steadily, suggesting a growing institutional appetite for regulated bitcoin products in Asia.
ChinaAMC's bitcoin ETF is the largest of the btc-spot”>Hong Kong bitcoin ETFwith over $142 million in net assets. Bosera Hashkey’s bitcoin ETF comes in next with around $99 million in holdings, followed by Harvest’s bitcoin ETF with $31 million. Together, the total bitcoin holdings across the three Hong Kong ETFs amount to approximately 4,450 btc, worth $272 million at current prices.
Industry observers believe innovations such as the ETFs’ redemption method could attract more capital over time. Hong Kong products allow for in-kind redemptions using actual bitcoins, unlike U.S. ETFs that only accept cash.
The growth indicates increasing bitcoin adoption by institutional investors in Asia. If interest in Hong Kong spot bitcoin ETFs continues at the current pace, they could emerge as a significant regional pool of bitcoin demand.
Other Asian countries, including Singapore, Malaysia and South Korea, are also in the process of launching bitcoin spot ETFs, which could further integrate bitcoin into traditional finance across the continent.
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