The Zhitong Finance App learned that on April 29, six virtual asset spot currency ETFs under Huaxia (Hong Kong), Bosch International and Harvest International approved by the Hong Kong Securities Regulatory Commission were issued for the first time, and will be officially listed on the Hong Kong Stock Exchange on April 30. Zhu Haokang, head of digital asset management and head of family wealth at Huaxia (Hong Kong), said that apart from Grayscale, the remaining 10 US Bitcoin spot ETF issuers reached 125 million US dollars on the first day of January 10 this year. The initial launch scale of the three issuers in Hong Kong will exceed this figure, and Huaxia Fund will be the largest of the three.

According to Zhu Haokang, the Bitcoin spot ETF managed by the largest asset management company in the US was issued on the first day of January 10 this year at a scale of only US$10.45 million. As of April 25, the ETF had soared to US$17.2 billion. Compared with the US, Hong Kong's spot ETFs allow cash and physical purchases or renewals. Huaxia's ETF is also the only ETF issuer that offers three counters in US dollars, Hong Kong dollars, and RMB. At the same time, it is also the only ETF issuer with unlisted shares. Many traditional crypto asset investors have actively participated in its IOP (initial offering) stage. Bitcoin miners, regions outside of Hong Kong such as Singapore and the Middle East, and local family offices are all interested in investing in their ETFs.

Bitcoin futures ETFs currently listed in Hong Kong and Bitcoin spot ETFs that are about to be listed are two different investment instruments. The former invests in Bitcoin futures contracts, while the latter directly holds Bitcoin, so spot ETFs will be closer to the actual market price of Bitcoin. However, since futures ETFs are affected by rolling costs, that is, the cost of purchasing a new contract when the current futures contract expires, futures ETFs have errors in price tracking.

Zhu Haokang also mentioned that from 2023 to the first quarter of 2024, the tracking deviation of Bitcoin futures ETFs expanded rapidly. Bitcoin futures ETFs listed in Hong Kong during the period showed a tracking deviation of nearly 60%, that is, investors holding futures ETFs earned nearly 60% less than holding Bitcoin spot. He believes that after the listing of spot ETFs, many investors in existing futures ETFs will be attracted to switch investments.

Asked whether mainland investors can invest in Bitcoin and Ether spot ETFs after opening a Hong Kong stock account, Zhu Haokang said that currently qualified investors, institutional investors, retail investors, and international investors who meet the regulations can invest in Hong Kong cryptocurrency spot ETFs. Currently, mainland Chinese investors cannot invest. The company will continue to monitor whether there are corresponding regulatory adjustments or specific regulatory frameworks introduced in the future.

Huaxia (Hong Kong) said that following the issuance of spot Bitcoin ETFs by the US, the Hong Kong market will soon become the first market in Asia to issue spot Bitcoin and Ether ETFs, and cryptocurrency ETFs are expected to be recognized by more and more markets in the future. As more and more investors participate extensively in cryptocurrency investments, cryptocurrencies such as Bitcoin and Ethereum may soon become mainstream assets in the new economic era.

Analysts expect that the asset management scale of Hong Kong's spot Bitcoin and Ether ETFs is expected to reach 1 billion US dollars in the future, but whether this goal can be achieved may depend on the speed of infrastructure and ecosystem improvements.