Hong Kong Bitcoin ETFs Top $250M AUM

Hong Kong spot Bitcoin exchange traded funds (ETFs) in management (AUM) have surpassed 2 billion Hong Kong dollars (about $256 million).

Hong Kong Bitcoin (BTC) ETFs have had a relatively slow start compared to their US counterparts.

According to data from Soso Value, the three spot BTC ETFs in Hong Kong experienced a net inflow of roughly 247 BTC last week, bringing their total holdings to 4,450 BTC. Total AUM of AFAs now stands at HK$2.1 billion ($269 million).

China Asset Management and Harvest Asset Management – which operates in partnership with digital asset trading platform OSL – have accounted for more than HK$1.3 billion ($167 million) in AUM. The third place Bitcoin ETF, which is not connected to OSL, holds HK$776 million ($99.5 million), which represents 42% of the market.

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Hong Kong investors have narrow options for gaining exposure to BTC compared to the 11 offerings in the US market.

A smaller start than the US

Despite the recent surge, Hong Kong spot Bitcoin ETFs have underperformed relative to their US counterparts. When EFAs launched on April 30, they pulled in a total of $262 million in their first week, with most of this figure recorded before the listing went live.

Actual asset inflows in the first week were a modest $14 million, a stark contrast to the billions that poured into U.S.-based Bitcoin ETFs when they launched in January.

This disparity highlights the challenges Hong Kong faces in positioning itself as a global hub for cryptocurrency investments.

As noted by Bloomberg ETF analyst Rebecca Sin, the city's one-of-a-kind ETF innovation model offers a unique opportunity to increase AUM and trade volume. However, Hong Kong has not been able to catch up with the US market in terms of investor demand and capital gains.

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