The launch of spot cryptocurrency exchange-traded funds (ETFs) in Hong Kong in April 2024 marked a watershed moment for digital asset investment in Asia. As the first jurisdiction in the region to approve such products, Hong Kong has completed its first full year of live crypto ETF trading—delivering a clear verdict on market performance and investor sentiment.
A year later, results are in: Bitcoin ETFs have surged, delivering strong returns, while Ethereum ETFs have struggled amid persistent price declines. Beyond performance, the momentum is shifting toward next-generation financial innovation—particularly tokenized assets and staking-enabled ETFs—as asset managers double down on Web3’s long-term potential.
Bitcoin ETFs Deliver Strong Returns: Up to 47% Growth
As of April 29, 2025, the three major spot Bitcoin ETFs listed in Hong Kong have posted impressive gains, reflecting the underlying strength of Bitcoin’s price over the past 12 months.
- Bosera Bitcoin ETF (03008.HK): +47.1%
- CSOP Bitcoin ETF (03439.HK): +46.19%
- ChinaAMC Bitcoin ETF (03043.HK): +46.76%
These returns align closely with Bitcoin’s market trajectory. Starting the year around $60,000, Bitcoin climbed as high as $110,000 before settling near the $100,000 mark—a cumulative increase of over 40%. This sustained upward trend has been the primary driver behind the ETFs’ success.
In contrast, Ethereum-based ETFs have underperformed significantly, all recording double-digit losses:
- Bosera Ethereum ETF (03009.HK): -44.22%
- CSOP Ethereum ETF (03179.HK): -46.76%
- ChinaAMC Ethereum ETF (03046.HK): -44.53%
Ethereum’s price fell from approximately $2,200 to around $1,600 during the same period, dragging down fund valuations. Sopha Chen, head of a licensed virtual asset trading platform in Hong Kong, emphasized: “ETF performance is directly tied to their underlying assets—especially volatile ones like Bitcoin and Ethereum. The key takeaway? Choosing the right asset class matters more than ever.”
Understanding Bitcoin ETF Investment Requirements
Investors interested in Hong Kong’s Bitcoin ETFs should understand the basic trading mechanics and eligibility criteria:
- Minimum trading units: Ranging from 10 to 100 shares per lot
- Minimum subscription amounts: Between 10,000 and 50,000 shares, depending on issuer
- Settlement options: Support for both cash and in-kind redemption, allowing qualified investors to exchange ETF shares for actual Bitcoin
Currently, participation is limited to Hong Kong residents or individuals holding a Hong Kong identity card, who must also maintain a local securities account. While retail access exists, the high minimum thresholds mean these products primarily attract institutional and high-net-worth investors.
From Crypto ETFs to Tokenized Funds: The Next Frontier
With the initial success of spot Bitcoin ETFs, Hong Kong’s asset management industry is rapidly advancing into more sophisticated offerings. The focus has shifted from simple exposure to digital assets toward tokenization, on-chain settlement, and yield-generating structures.
Key developments include:
- Bosera × HashKey Ethereum ETF: Asia Pacific’s first spot Ethereum ETF with staking functionality
- ChinaAMC Ethereum ETF: Now supports staking rewards for investors
- CSOP International: Launched Hong Kong’s first tokenized fund, available exclusively to professional investors
- ChinaAMC HKD Digital Currency Fund: The region’s first tokenized fund open to retail investors
- Bosera × HashKey Tokenized HKD/USD ETF: The world’s first ETF offering tokenized fiat currency exposure, launched in April 2025
This evolution from traditional ETFs to blockchain-native financial products signals that Hong Kong is entering a new phase of Web3 asset management—one where efficiency, transparency, and programmable finance take center stage.
Regulatory Support Fuels Web3 Financial Innovation
Government and regulatory backing has played a crucial role in accelerating Hong Kong’s Web3 ambitions. On April 7, 2025, Financial Secretary Paul Chan announced plans to release a second virtual asset policy statement aimed at integrating digital assets into mainstream finance.
The Securities and Futures Commission (SFC) reaffirmed its commitment to fostering innovation in two key areas: ETF product expansion and asset tokenization. During the Hong Kong Web3 Festival, regulators highlighted growing market activity, including:
- Multiple tokenized structured notes linked to equities and commodities
- Digital versions of gold-backed and money market products
- Increasing retail participation in tokenized funds
Industry forecasts suggest the global tokenized asset market could surpass **$1 trillion by 2030**, with potential savings in operational and settlement costs exceeding $100 billion annually. Many analysts compare this growth phase to the early days of ETF adoption—when skepticism gave way to widespread institutional embrace.
Conclusion: Bitcoin ETFs Shine While Tokenization Drives the Next Wave
The first year of Hong Kong’s crypto ETF experiment has delivered clear lessons:
- Bitcoin ETFs have proven successful, establishing Hong Kong as a leading hub for regulated digital asset investment in Asia
- Ethereum ETFs lagged, underscoring the importance of asset selection and market timing
- The industry is moving beyond passive exposure, embracing tokenized funds, staking integration, and on-chain asset management
For global investors, Hong Kong is emerging as a critical testing ground for Web3 financial innovation—combining regulatory clarity, institutional infrastructure, and technological ambition.
Frequently Asked Questions (FAQ)
Are Bitcoin ETFs safe for investors?
Yes, Bitcoin ETFs traded on regulated exchanges like those in Hong Kong are subject to strict oversight by financial authorities. They hold real Bitcoin through custodial arrangements and provide transparent pricing and reporting mechanisms, making them a safer alternative to direct crypto ownership for many investors.
What is asset tokenization?
Asset tokenization refers to converting ownership rights of physical or financial assets—such as real estate, bonds, or cash—into digital tokens on a blockchain. These tokens can be traded more efficiently, offer fractional ownership, and enable automated compliance and settlement.
Can retail investors buy Hong Kong crypto ETFs?
Yes, but with limitations. While these ETFs are listed on public exchanges, high minimum investment thresholds (e.g., 10,000–50,000 shares) mean they are primarily accessible to institutional or wealthy individual investors. Retail participation remains limited but may expand with newer tokenized products.
Why did Bitcoin outperform Ethereum in 2024–2025?
Bitcoin benefited from stronger institutional demand, perceived scarcity due to halving events, and its positioning as “digital gold.” Ethereum faced challenges including slower adoption of staking rewards post-upgrades and increased competition from other smart contract platforms.
What are staking-enabled crypto ETFs?
These ETFs not only track the price of a cryptocurrency like Ethereum but also earn yield by participating in network validation (staking). Investors gain exposure to both price appreciation and passive income—a feature increasingly in demand.
Is Hong Kong becoming a global crypto hub?
With progressive regulation, support for spot ETFs, early adoption of tokenization, and government-backed Web3 initiatives, Hong Kong is positioning itself as a leading gateway for digital finance in Asia—and a credible alternative to traditional financial centers.
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