The launch of Asia’s first spot bitcoin and ether exchange-traded funds (ETFs) marks a pivotal moment in the region’s financial evolution. On April 24, 2025, Hong Kong’s Securities and Futures Commission (SFC) officially approved six virtual asset spot ETFs from major asset managers including CSOP Asset Management, Bosera Asset Management (International), and Harvest Fund Management (Hong Kong). These products are set to begin trading on the Hong Kong Stock Exchange by the end of April, offering both retail and institutional investors regulated, transparent, and efficient access to digital assets.
This approval not only introduces a groundbreaking investment vehicle to Asian markets but also reinforces Hong Kong’s ambition to become a global hub for virtual asset finance. With competitive fee structures, innovative subscription models, and strong regulatory oversight, these ETFs are poised to reshape how investors engage with cryptocurrencies.
The Approved ETFs and Their Key Features
Three leading fund managers have secured approval for dual offerings—one each for bitcoin and ether—resulting in six spot crypto ETFs expected to list imminently.
- CSOP Bitcoin ETF & CSOP Ether ETF
Managed by CSOP Asset Management (Hong Kong), these funds will charge a management fee of 0.99%, one of the highest among the approved products. However, this rate may support robust distribution incentives, mirroring successful strategies used by other early movers in the market. - Bosera Bitcoin ETF & Bosera Ether ETF
Jointly filed by Bosera International and HashKey Capital, these ETFs carry a 0.6% management fee, with a promotional waiver for the first four months post-launch. They are assigned stock codes 3008.HK and 3009.HK—one of which includes the culturally favorable number “8,” potentially boosting investor recall and liquidity. - Harvest Bitcoin ETF & Harvest Ether ETF
Offered by Harvest Fund Management (International), these funds stand out with a zero management fee for the first six months, followed by a reduced rate of 0.3% thereafter. This aggressive pricing strategy positions Harvest as a cost leader, likely appealing to price-sensitive investors.
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All ETFs aim to track the spot prices of bitcoin and ether before fees and expenses, providing direct exposure without requiring investors to hold or manage digital assets directly.
How Do These ETFs Work?
Unlike futures-based crypto ETFs that track derivative contracts, these newly approved funds are spot ETFs, meaning they hold actual bitcoin and ether reserves. This structure offers more accurate price tracking and avoids issues like contango or roll yield associated with futures.
A notable innovation is the in-kind subscription and redemption mechanism—investors can purchase ETF shares using either cash or their own bitcoin or ether holdings. This dual-option model enhances flexibility and lowers barriers for existing crypto holders looking to diversify into regulated financial instruments.
For custody, Harvest has partnered with OSL Digital Securities—Hong Kong’s first SFC-licensed digital asset platform—alongside institutional trustee China Bank (Hong Kong) Limited. This setup ensures secure storage and compliance while addressing concerns around counterparty risk and price premium discrepancies seen in less-regulated markets.
Why This Matters for Investors
Bitcoin is widely recognized as “digital gold,” serving as a decentralized store of value. Ether powers smart contracts and decentralized applications (dApps), forming the backbone of Web3 innovation. By offering regulated ETF access to both assets, Hong Kong bridges traditional finance with emerging blockchain ecosystems.
According to Zhu Haokang, Head of Digital Asset Management at CSOP (Hong Kong), “Spot crypto ETFs provide a secure, efficient, and convenient way to invest in digital assets—backed by regulators, listed on a major exchange, managed by professional firms, and integrated with licensed crypto platforms.”
HashKey Capital emphasized that the approval builds a critical bridge between conventional capital and digital assets, expanding access for mainstream and retail investors who previously faced technical or compliance hurdles.
Lowering Barriers to Digital Asset Investment
One of the most significant benefits of these ETFs is their ability to democratize access. Investors no longer need to navigate complex wallets, private keys, or unregulated exchanges. Instead, they can buy shares through familiar brokerage accounts—just like any other stock or ETF.
As Han Tongli, CEO and CIO of Harvest International, stated:
“These products mark the beginning of a new era where digital assets integrate seamlessly into traditional portfolios. By supporting in-kind subscriptions, we enhance transparency, reduce friction, and strengthen investor confidence.”
This shift could accelerate institutional adoption across Asia, where many asset allocators have been hesitant due to custody and regulatory uncertainties.
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What About Competition Among Issuers?
With multiple players entering the market simultaneously, competition is expected to be intense. Analysts at Bloomberg Intelligence highlight key differentiators:
- Fee structures: From free trials to tiered pricing
- Distribution strategies: Incentivized sales channels
- Market makers and trading platforms: Affecting liquidity and bid-ask spreads
- Stock ticker memorability: Codes like 3008.HK may attract more attention
Rebecca Sin, ETF Analyst at Bloomberg Intelligence, notes:
“Each fund brings unique advantages. Investors should evaluate total ownership costs—not just management fees—but also trading spreads, tracking accuracy, and redemption mechanisms.”
As such, savvy investors will need to compare not only expense ratios but also operational details like underlying custodians, audit transparency, and real-time net asset value (NAV) reporting.
Frequently Asked Questions (FAQ)
Q: Can mainland Chinese investors access these ETFs?
A: Currently, there is no official inclusion in the Stock Connect program. Mainland investors would need to open a Hong Kong brokerage account to participate.
Q: How can I buy these ETFs?
A: You can purchase them via any broker that supports Hong Kong Stock Exchange listings. Some platforms may also allow direct cryptocurrency deposits for in-kind subscriptions.
Q: Do I own actual bitcoin if I invest in these ETFs?
A: No—you own shares in the fund, which holds the underlying assets. However, this provides indirect exposure without self-custody responsibilities.
Q: Are these ETFs safer than holding crypto on exchanges?
A: Yes. These funds operate under strict SFC regulations, use audited custodians, and offer daily transparency reports—offering enhanced security compared to many centralized crypto platforms.
Q: Will more crypto ETFs be approved in the future?
A: Likely. With strong initial demand and regulatory validation, additional issuers—including global players—may seek approvals for new products covering other digital assets.
Q: Can I redeem my ETF shares for actual bitcoin?
A: Institutional investors may have this option through authorized participants. Retail investors typically sell shares on the exchange.
Looking Ahead: A New Chapter for Asian Finance
The approval of Asia’s first spot bitcoin and ether ETFs represents more than just a product launch—it signals Hong Kong’s commitment to financial innovation within a regulated framework. By combining traditional fund structures with cutting-edge blockchain infrastructure, these ETFs pave the way for broader Web3 integration into global capital markets.
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As competition heats up and adoption grows, expect further product enhancements—from lower fees to expanded asset coverage. For investors, now is the time to understand how these instruments work and whether they align with long-term wealth strategies.
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