The launch of crypto spot ETFs in Hong Kong marked a pivotal moment in Asia’s financial evolution. One year after their debut, these innovative investment products have not only weathered market volatility but also laid the groundwork for a broader transformation in digital asset adoption. As institutions accelerate the development of new asset classes—from staking-enabled ETFs to tokenized funds—the region is positioning itself as a leading hub for blockchain-integrated finance.
Performance Review: Bitcoin vs. Ethereum ETFs
When Hong Kong debuted its first crypto spot ETFs in April 2024, three major mainland-backed asset managers—Bosera (International), Harvest Fund (International), and China Asset Management (Hong Kong)—launched six funds: three tracking Bitcoin and three tied to Ethereum. After one year of trading, the divergence in performance tells a compelling story.
As of April 29, 2025:
- Bosera Bitcoin ETF (03008.HK): +47.1%
- Harvest Bitcoin ETF (03439.HK): +46.19%
- ChinaAMC Bitcoin ETF (03043.HK): +46.76%
In contrast, Ethereum-based ETFs posted significant losses:
- Bosera Ethereum ETF (03009.HK): –44.22%
- Harvest Ethereum ETF (03179.HK): –46.76%
- ChinaAMC Ethereum ETF (03046.HK): –44.53%
👉 Discover how institutional investors are navigating volatile crypto markets with regulated ETFs.
This stark contrast mirrors the underlying price movements of the assets themselves. Over the same period, Bitcoin surged from around $60,000 to nearly $110,000 before settling below $100,000—a gain of roughly 40%. Meanwhile, Ethereum declined from approximately $2,200 to the $1,600 range, reflecting a drop of about 40%.
“Crypto spot ETF performance closely tracks the underlying asset,” said Sopha Chen, head of a licensed virtual asset trading firm in Hong Kong. “Whether investors profit or lose depends entirely on which asset they choose.”
Why Bitcoin ETFs Outperformed
Several factors contributed to Bitcoin’s stronger showing:
- Institutional adoption: Increased demand from corporations and global funds.
- Halving cycle: The 2024 Bitcoin halving event historically precedes bull runs.
- Regulatory clarity: U.S. SEC approvals of spot Bitcoin ETFs boosted investor confidence.
- Store-of-value narrative: Bitcoin continues to be viewed as “digital gold” amid macroeconomic uncertainty.
Ethereum, while foundational to decentralized applications and smart contracts, faced headwinds due to slower scalability progress and increased competition from alternative Layer 1 blockchains.
How Crypto Spot ETFs Work
Crypto spot ETFs function similarly to traditional commodity ETFs like gold. Instead of futures contracts, they hold actual cryptocurrency reserves, aiming to mirror the real-time price of the underlying asset.
Key advantages include:
- Simplified access: Investors trade through familiar stock exchanges without managing private keys.
- Enhanced security: Custodial solutions eliminate self-custody risks.
- Regulatory oversight: All products are approved and monitored by the Securities and Futures Commission (SFC).
- Redemption flexibility: Most ETFs allow cash or in-kind redemptions, enabling long-term holders to retain exposure to physical crypto assets.
To invest, individuals must open a brokerage account in Hong Kong. While sales to mainland retail investors are restricted under SFC and HKMA guidelines, eligible residents—including non-permanent residents with Hong Kong IDs—can participate if they meet compliance requirements.
Investment Thresholds Vary by Fund
| Fund | Minimum Initial Subscription | Lot Size |
|---|---|---|
| Bosera Bitcoin ETF | 10,000 units | 10 shares |
| Harvest Bitcoin ETF | 50,000 units | 100 shares |
| ChinaAMC Bitcoin ETF | 10,000 units | 100 shares |
These thresholds reflect differing strategies: Bosera targets broader accessibility, while Harvest focuses on institutional-grade participation.
Institutional Innovation: Beyond Basic ETFs
With initial spot ETFs proving stable, Hong Kong’s financial institutions are pushing into uncharted territory.
Staking-Enabled Ethereum ETFs
On April 11, 2025, Bosera HashKey Ethereum ETF received SFC approval to begin staking activities—making it the first staking-enabled crypto spot ETF in Asia. Just days later, ChinaAMC announced similar approval for its Ethereum ETF.
Staking allows investors to earn yield by participating in Ethereum’s proof-of-stake consensus mechanism. This innovation transforms passive holdings into income-generating assets—a major upgrade over basic tracking funds.
Tokenized Funds Enter Retail Markets
Tokenization is another frontier gaining momentum:
- Harvest (International) launched Hong Kong’s first tokenized fund for professional investors using Meta Lab HK’s infrastructure.
- On February 28, ChinaAMC introduced the Asia-Pacific’s first retail-accessible tokenized fund: the ChinaAMC HKD Digital Currency Fund, investing in short-term HKD-denominated deposits and money market instruments.
- By April 2025, Bosera (International), in partnership with HashKey Group, issued the world’s first tokenized money market ETF, available globally.
These developments signal a shift toward blockchain-native financial products that offer faster settlement, lower costs, and 24/7 tradability.
👉 Explore how tokenization is reshaping the future of asset management.
Government Support Fuels Growth
Hong Kong’s government has played a proactive role in fostering this ecosystem.
On April 7, 2025, Financial Secretary Paul Chan unveiled plans for a second Virtual Asset Development Policy Statement, outlining strategies to:
- Integrate Web3 technologies into traditional finance
- Empower real-economy use cases
- Expand digital asset infrastructure
The SFC has also confirmed that Hong Kong now hosts:
- Tokenized private structured notes and warrants
- Blockchain-based bonds and private funds
- Three listed retail tokenized money market funds
- A record-breaking retail tokenized gold product
According to industry estimates, the global tokenized asset market could reach $1 trillion by 2030**, with potential annual cost savings exceeding **$100 billion in asset management alone.
Frequently Asked Questions
Q: Can mainland Chinese investors buy Hong Kong crypto ETFs?
A: Not directly. Under current regulations, these products cannot be marketed to retail investors in regions where virtual assets are restricted. However, mainland residents with Hong Kong IDs and brokerage accounts may participate under compliance rules.
Q: Do crypto spot ETFs pay dividends or yields?
A: Standard Bitcoin and Ethereum ETFs do not generate income. However, newer staking-enabled Ethereum ETFs allow investors to earn staking rewards through their holdings.
Q: Are crypto ETFs safer than buying crypto directly?
A: Yes—for many users. ETFs eliminate private key management risks and benefit from regulatory oversight and institutional custody. However, they still carry market risk due to crypto price volatility.
Q: What’s the difference between a spot ETF and a futures ETF?
A: A spot ETF holds actual cryptocurrency and tracks its real-time price. A futures ETF uses derivatives contracts, which may deviate from spot prices over time due to roll costs and contango.
Q: How do I start investing in Hong Kong crypto ETFs?
A: You need a Hong Kong brokerage account. Once set up, you can trade these ETFs like any other stock on the Hong Kong Exchange (HKEX).
Q: Will more crypto assets be added to ETFs soon?
A: Likely. Following Bitcoin and Ethereum, there is growing interest in ETFs for assets like Solana, Cardano, or even decentralized finance (DeFi) indices—though no formal filings have been made yet.
👉 Stay ahead of the next wave of blockchain-powered financial innovation.
The Road Ahead
One year on, Hong Kong’s crypto spot ETF experiment has proven resilient. While returns depend heavily on asset selection, the structural benefits—accessibility, regulation, and integration with traditional finance—are clear.
With institutions now pioneering staking and tokenization, the line between conventional finance and Web3 is blurring. As regulatory clarity improves and investor education expands, these products could become mainstream components of diversified portfolios.
For global investors watching Asia’s fintech evolution, Hong Kong’s bold steps offer both cautionary lessons and exciting opportunities.
Core Keywords: crypto spot ETF, Bitcoin ETF, Ethereum ETF, tokenized funds, staking ETF, Hong Kong crypto, virtual asset regulation, Web3 finance