Hong Kong’s Bitcoin ETFs are off to a slow start, trailing far behind their US counterparts.
Hong Kong’s spot Bitcoin exchange-traded funds (ETFs) are making headlines, having now crossed the HK$2 billion mark (roughly $256 million) in assets under management (AUM). However, despite this milestone, these ETFs have struggled to keep pace with their counterparts in the United States.
Recent data from SoSo Value reveals that the three spot Bitcoin ETFs in Hong Kong saw a net inflow of approximately 247 BTC over the past week, boosting their total holdings to around 4,450 BTC. This has pushed their combined AUM to approximately HK$2.1 billion ($269 million).
The ETFs from China Asset Management and Harvest Asset Management, both operated in partnership with the digital asset trading platform OSL, dominate the market, accounting for over HK$1.3 billion ($167 million) in AUM.
Meanwhile, the third spot Bitcoin ETF, which operates independently of OSL, holds HK$776 million ($99.5 million), capturing about 42% of the market share. Despite these numbers, Hong Kong investors have far fewer options to gain Bitcoin exposure compared to the 11 offerings available in the U.S. market.
Hong Kong’s Bitcoin ETFs got off to a slower start than those in the U.S. While they attracted $262 million in their first week following the April 30 launch, most of this figure was pre-subscribed before the ETFs even went live.
Moreover, actual inflows during that first week were a modest $14 million—quite a contrast to the billions that poured into U.S. spot Bitcoin ETFs when they launched back in January.
As Bloomberg ETF analyst Rebecca Sin pointed out, Hong Kong’s unique in-kind ETF creation model offers the potential to boost AUM and trading volume. Yet, the city is still trailing behind the U.S. in terms of investor enthusiasm and capital inflows.
