Introduction
On April 23, 2024, Hong Kong marked a historic moment in virtual asset investment as three major asset managers - China Asset Management (ChinaAMC), Harvest Global Investments, and Bosera Asset Management - received approval to launch Bitcoin and Ethereum spot ETFs. These groundbreaking products represent Asia's first spot crypto ETFs, offering investors regulated exposure to digital assets through traditional securities exchanges.
What Are Bitcoin/Ethereum Spot ETFs?
Spot crypto ETFs are exchange-traded funds that:
- Hold physical cryptocurrencies to track their prices
- Trade like stocks throughout market hours
- Function similarly to gold spot ETFs
These products simplify crypto investing by eliminating the technical complexities of direct ownership while maintaining price correlation through physical backing.
Key Features Comparison
Listing Details
| Feature | ChinaAMC | Harvest | Bosera |
|---|---|---|---|
| Listing Date | April 30, 2024 | April 30, 2024 | April 30, 2024 |
| Initial Price | $1.00 | $1.00 | CME CF BRR x 0.0001 |
Trading Mechanics
Board Lot Sizes:
- ChinaAMC/Harvest: 100 shares
- Bosera: 10 shares
Minimum Creation Units:
- ChinaAMC/Bosera: 10,000 shares
- Harvest: 50,000 shares
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Fees Structure
| Period | ChinaAMC | Harvest | Bosera |
|---|---|---|---|
| First 4-6 Months | 0.99% | 0% | 0% |
| Afterward | 0.99% | 0.3% | 0.6% |
Infrastructure & Partners
Custody Arrangements
All three ETFs use Bank of China International Trustees Limited as primary custodian, with sub-custodians:
- ChinaAMC/Harvest: OSL Digital Securities
- Bosera: Hash Blockchain
Market Makers & APs
| Role | ChinaAMC | Harvest | Bosera |
|---|---|---|---|
| Market Maker | Vivienne Court Trading | CLSA/Virtu FSG/CMB International | Not Disclosed |
| Authorized Participants | Multiple Hong Kong brokers | Additional: CMB International | Standard Selection |
Auditors
- ChinaAMC/Harvest: PwC
- Bosera: EY
Issuer Profiles
Assets Under Management (AUM)
| Metric | ChinaAMC | Harvest | Bosera |
|---|---|---|---|
| Mainland China AUM | $55.7B | $10.3B | $10.7B |
| Hong Kong AUM | $3.6B | $16M | $40M |
| ETF Count (HK) | 15 | 4 | 6 |
Investment Considerations
Eligibility Requirements
- Available only through Hong Kong-domiciled accounts
- Not offered to mainland Chinese retail investors per SFC circulars
- Hong Kong ID holders (including mainland residents) may participate
Advantages
- Regulated exposure to crypto markets
- Institutional-grade custody solutions
- Liquidity through traditional exchanges
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FAQ Section
Q: Can mainland Chinese investors buy these ETFs?
A: No - SFC regulations prohibit sales to mainland retail investors, though Hong Kong residents with proper documentation may access them.
Q: How do these ETFs differ from holding crypto directly?
A: They provide price exposure without the technical challenges of wallet management or exchange risks.
Q: Which issuer has the lowest fees?
A: Harvest offers the most competitive long-term fee structure at 0.3% after the initial waiver period.
Q: Are these ETFs available for international investors?
A: Yes, through Hong Kong brokerage accounts and compliant channels.
Q: What indexes do these ETFs track?
A: All three use the CME CF Bitcoin Reference Rate for accurate price tracking.
Q: How often can creations/redemptions occur?
A: Daily, through both cash and in-kind (crypto) mechanisms.
Conclusion
Hong Kong's crypto ETF "Big Three" each offer distinct advantages:
- ChinaAMC: Established presence, multi-currency support
- Harvest: Competitive fees, strong market-making
- Bosera: Flexible share units, specialized custody
As digital assets gain institutional acceptance, these ETFs provide a regulated gateway to crypto markets while showcasing Hong Kong's financial innovation leadership. Investors should evaluate their specific needs against each issuer's strengths when considering participation.