The Hong Kong financial market has taken a groundbreaking step into the digital asset era with the approval of spot Bitcoin and Ethereum ETFs. On April 23, 2025, three major asset management firms—CSOP Asset Management, Harvest Fund, and Bosera Asset Management—were granted approval to launch spot cryptocurrency ETFs in Hong Kong. These products mark the first time investors in Asia can gain regulated, exchange-traded exposure to physical Bitcoin (BTC) and Ethereum (ETH) without managing private keys or crypto wallets.
This development represents a significant shift toward institutional adoption, offering a secure, compliant, and accessible gateway for traditional investors to participate in the booming digital asset market.
What Are Spot Cryptocurrency ETFs?
A spot ETF holds actual underlying assets—meaning these ETFs directly own Bitcoin and Ethereum rather than tracking futures contracts or derivatives. This structure ensures that the ETF’s value closely mirrors the real-time market price of the cryptocurrencies it tracks.
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For retail and institutional investors alike, this means:
- No need to manage digital wallets or worry about private key security.
- Trading through familiar stock exchanges using standard brokerage accounts.
- Regulatory oversight enhances transparency and investor protection.
- Liquidity is improved through integration with traditional financial infrastructure.
These ETFs support in-kind creation and redemption, allowing authorized participants to exchange baskets of crypto for ETF shares (and vice versa), helping keep market prices aligned with net asset value (NAV).
Key Features of Hong Kong’s Leading Crypto ETFs
With three major players now offering similar products, understanding their differences is crucial for informed investment decisions. Below is a detailed comparison based on publicly available data.
Launch Date and Initial Pricing
All three ETFs launched on April 30, 2025, creating a synchronized entry into the Hong Kong market.
- CSOP and Harvest Fund: Both set their initial offering price at $1.00 per share.
- Bosera: Used a dynamic pricing model tied to the CME CF Bitcoin Reference Rate as of 4:00 PM HKT on April 26, 2025, multiplied by 0.0001.
This subtle difference may appeal to investors seeking price precision linked directly to global benchmarks.
Trading Units and Minimum Investment Requirements
Accessibility varies across providers:
| Feature | CSOP | Harvest Fund | Bosera |
|---|---|---|---|
| Minimum trading lot | 100 shares | 100 shares | 10 shares |
| Minimum creation unit (primary market) | 10,000 shares | 50,000 shares | 10,000 shares |
Bosera stands out with its low entry threshold of just 10 shares, making it more accessible for retail investors. In contrast, Harvest Fund requires a significantly higher minimum creation size, potentially limiting access to larger institutional players.
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Creation and Redemption Mechanism
All three funds support both cash-based and in-kind (physical crypto) creation and redemption processes. This dual mechanism:
- Enhances arbitrage efficiency.
- Helps maintain tight spreads between NAV and market price.
- Attracts market makers and authorized participants who help stabilize trading.
Supported Trading Currencies
Global accessibility matters—especially in a financial hub like Hong Kong.
- CSOP: Supports USD, HKD, and CNH (offshore RMB) — the broadest multi-currency offering.
- Harvest Fund and Bosera: Support USD and HKD only.
CSOP’s inclusion of RMB-denominated shares could facilitate greater cross-border investment from mainland China via programs like Stock Connect.
Management Fees: Cost Efficiency Over Time
Ongoing costs impact long-term returns. Here's how they compare:
- CSOP: Flat fee of 0.99% annually — simple but relatively high.
- Harvest Fund: 0% for the first six months, then reduced to 0.3% — one of the most competitive long-term rates.
- Bosera: 0% for the first four months, followed by 0.6% — balanced incentive structure.
Harvest Fund’s aggressive pricing strategy appears designed to capture early market share by minimizing cost barriers during the launch phase.
Trading Platforms and Custody Infrastructure
Where the assets are held and traded affects trust and operational resilience.
- CSOP & Harvest Fund: Use OSL Exchange, a licensed virtual asset platform in Hong Kong known for institutional-grade custody and trading services.
- Bosera: Partners with HashKey Exchange, another regulated HK-based platform with strong backing from traditional financial institutions.
Both OSL and HashKey are recognized for compliance with Securities and Futures Commission (SFC) standards, ensuring investor funds are safeguarded under strict regulatory frameworks.
Authorized Participants (Market Makers & Brokers)
Liquidity depends heavily on authorized participants—the financial institutions that create and redeem ETF shares.
Key brokers involved include:
- Victory Securities
- Mirae Asset Securities
- Wah Yuen Eastern Holdings
- Apex Securities
- Futu Capital Securities
Harvest Fund also includes China Merchants Securities, expanding its institutional network. These partnerships ensure robust liquidity provisioning and tighter bid-ask spreads for end investors.
Why Hong Kong’s Crypto ETF Rollout Matters
Hong Kong is positioning itself as Asia’s premier digital asset hub. By approving spot crypto ETFs, regulators signal confidence in blockchain technology while maintaining investor protection standards. This move:
- Bridges traditional finance with decentralized assets.
- Encourages innovation within a regulated environment.
- Offers an alternative to U.S.-listed ETFs for Asian investors seeking localized access.
Moreover, the ability to trade crypto-linked ETFs in multiple currencies on familiar platforms lowers psychological and technical barriers for new entrants.
Frequently Asked Questions (FAQ)
Q: Do I own actual Bitcoin if I invest in these ETFs?
A: Not directly—but the ETF holds real Bitcoin in secure custody. Your shares represent indirect ownership backed by physical assets.
Q: Can retail investors buy these ETFs easily?
A: Yes, especially with Bosera’s 10-share minimum lot. Investors can trade them like any stock through participating brokers or online trading platforms.
Q: Are these ETFs safer than buying crypto on exchanges?
A: Generally yes. They offer regulatory oversight, professional custody, audit trails, and no need to manage private keys—reducing risks of theft or loss.
Q: How do management fees affect returns?
A: Lower fees mean more of your returns stay in your pocket. Over time, even small differences (e.g., 0.3% vs. 0.99%) can significantly impact compounded gains.
Q: Will more crypto ETFs be approved in Hong Kong?
A: Likely. With growing demand and successful launches, other asset managers may follow suit—possibly including altcoin-based or staking-income ETFs.
👉 Stay ahead of future crypto ETF launches—get insights before they go live.
Final Thoughts: Which One Should You Choose?
Each provider brings unique strengths:
- CSOP: Best for multi-currency access and established brand reputation.
- Harvest Fund: Ideal for cost-conscious investors due to ultra-low post-promotion fees.
- Bosera: Most retail-friendly with low minimums and flexible trading units.
Ultimately, your choice should align with your investment goals, preferred currency, trading frequency, and cost sensitivity.
As Hong Kong continues to build its Web3 ecosystem, these ETFs represent not just investment vehicles—but milestones in the evolution of modern finance.