Hong Kong regulators have approved ETFs by Harvest Global Investments, China Asset Management, and a jointly managed product of Bosera Asset Management and HashKey Capital. Bloomberg reported that Hong Kong Bitcoin ETFs will start trading on April 30.
Hong Kong‘s financial regulator announced the approval of Hong Kong ETFs on April 24, according to a press release shared with Cointelegraph.
According to a post by Bloomberg Intelligence analyst James Seyffart, the issuers of the ETFs disclosed the fee, which is as low as 0.3% after a six-month waiver.
Hong Kong Initiates Bitcoin ETF Competition
China Asset Management Co. (China AMC), Harvest Global Investments, Bosera International, and HashKey Capital will use the Bank of China International-Prudential Trustee Limited (BOCI-Prudential) as their custodian.
The approved ETFs are specially designed to track Ethereum and Bitcoin’s performance. The Hong Kong Bitcoin ETFs use measures such as the CME CF Bitcoin Reference Rate and the CME CF Ether-Dollar Reference Rate.
The table shared on X by Seyffart shows the management fee charged by China AMC, Bosera, and HashKey, which will charge 0.99%, and 0.6%, respectively, whereas Harvest Global will charge 0.3% after a 6-month waiver.
“A potential fee war could break out in Hong Kong over these Bitcoin & Ethereum ETFs,” said Seyffart. “Harvest coming in hot with a full fee waiver and the lowest fee at 0.3% after waiver.”
China AMC Introduces New Investment Options
The approval made by China AMC mentioned that their ETFs are “expected to begin trading on Hong Kong Stock Exchange (HKEX) starting April 30, 2024,” which is the first financial product in the Asian market.
“The spot Bitcoin and Ether ETFs offer retail and institutional investors a safe, efficient, and convenient means to invest in virtual assets in a regulated framework,” said Thomas Zhu.
He further stated that “The in-kind feature also attracts coin holders by offering the ease of converting coins to fully regulated ETFs managed by professional fund managers and regulated custodians,”
According to China AMC, Hong Kong wants to encourage a vibrant web3 ecosystem. This is a good chance to create a unique investment option for China. These options will help their clients reach their investment goals.
