Overview
On April 30th, Hong Kong's pioneering crypto spot ETFs marked their first anniversary. Initially launched by three mainland asset management giants—Bosera, Harvest, and ChinaAMC—via their Hong Kong subsidiaries, these six ETFs (three Bitcoin and three Ethereum) have shown divergent performance:
- Bitcoin ETFs: ~47% average return
- Ethereum ETFs: ~-45% average return
This disparity mirrors the underlying assets' price movements: Bitcoin surged from $60K to $100K+, while Ethereum dropped from $2,200 to $1,600.
Performance Analysis
Bitcoin ETFs
| Fund (Ticker) | Return |
|---|---|
| Bosera BTC (03008.HK) | 47.1% |
| Harvest BTC (03439.HK) | 46.19% |
| ChinaAMC BTC (03043.HK) | 46.76% |
Ethereum ETFs
| Fund (Ticker) | Return |
|---|---|
| Bosera ETH (03009.HK) | -44.22% |
| Harvest ETH (03179.HK) | -46.76% |
| ChinaAMC ETH (03046.HK) | -44.53% |
Key Insight: ETFs' returns tightly correlate with their underlying crypto assets. Investors hedging both saw minimal net gains.
Market Dynamics
Investor Behavior
- Bitcoin ETFs attracted higher trading volumes, reflecting greater confidence.
- Ethereum ETFs remained niche due to bearish market sentiment.
👉 Why institutional investors favor Bitcoin ETFs
Operational Advantages
- Simplified Access: Eliminates direct crypto custody risks.
- Regulated Framework: Compliant with Hong Kong SFC standards.
- Dual Redemption: Supports cash/spot conversions for liquidity.
Regulatory Landscape
- Eligibility: Restricted to Hong Kong residents/professional investors; mainland retail participation prohibited.
- Innovation Push: Recent approvals for staked ETH ETFs (e.g., Bosera HashKey ETH ETF) signal progressive policies.
ETF Trading Rules
| Feature | Bosera BTC | Harvest BTC | ChinaAMC BTC |
|---|---|---|---|
| Min. Trade (Shares) | 10 | 100 | 100 |
| Min. Creation (Shares) | 10,000 | 50,000 | 10,000 |
Institutional Innovations
Recent Milestones
- Tokenized Funds: Harvest launched Hong Kong’s first (professional-only).
- Retail Tokenization: ChinaAMC’s HKD Money Market Fund (March 2024).
- Global First: Bosera’s tokenized MM ETF (April 2024).
Quote: "Tokenization could save $100B+ annually in asset management costs." — Market Analyst
Government & Industry Outlook
- Policy Support: Hong Kong’s 2024 Web3 Policy Declaration emphasizes digital asset integration.
- Growth Projections: Tokenized assets may reach $1T+ by 2030, rivaling traditional ETFs.
FAQ
1. Can mainland Chinese investors buy these ETFs?
No. Hong Kong SFC restricts sales to mainland retail investors.
2. Why did Ethereum ETFs underperform?
Ethereum’s price dropped ~40% year-over-year, directly impacting ETF valuations.
3. What’s next for crypto ETFs?
Expect more staking-enabled products and tokenized derivatives.
4. Are crypto ETFs safer than direct crypto purchases?
Yes—regulated custodianship mitigates theft/hacking risks.
Note: All data as of April 29, 2024. Performance figures are net of fees.