Hong Kong’s spot Bitcoin exchange-traded funds (ETFs) have recently crossed HK$2 billion (about $256 million) in assets under management (AUM).
Although this marks steady progress for the region’s cryptocurrency market, these ETFs are growing at a slower pace compared to those in the United States.
According to data from SoSo Value, the three spot Bitcoin ETFs in Hong Kong added around 247 BTC in the last week, increasing their total holdings to about 4,450 BTC. This brings the combined AUM to HK$2.1 billion ($269 million).
Image Source | Soso Value
Two of the ETFs, managed by China Asset Management and Harvest Asset Management in partnership with digital asset platform OSL, hold more than HK$1.3 billion ($167 million) in assets. The third ETF, which operates separately from OSL, manages HK$776 million ($99.5 million), representing about 42% of the market.
However, when compared to similar funds in the U.S., Hong Kong’s ETFs had a much slower start. After launching earlier this year, they saw only $14 million in new investments during their first week, a small amount compared to the billions that flowed into U.S. Bitcoin ETFs when they first opened.
This difference shows some of the challenges Hong Kong faces in becoming a global leader in cryptocurrency investments.
While experts like Bloomberg’s Rebecca Sin believe that Hong Kong’s ETF model could eventually boost asset growth and trading activity, the city still struggles to attract the same level of interest as the U.S. market.
Overall, while Hong Kong’s Bitcoin ETFs are growing, they have a long way to go before catching up with more established markets like the United States.
Also Read: Hong Kong to enhance its Digital Asset Rules in 18 Months
