Hong Kong Bitcoin Spot ETF: Key Players and Market Outlook

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The approval of Hong Kong’s first bitcoin spot ETFs is poised to be a landmark moment for the city’s financial and digital asset markets. With anticipation building throughout early 2025, industry watchers expect the Securities and Futures Commission (SFC) to announce the initial list of approved issuers as early as mid-April. This development marks a strategic step in Hong Kong’s ambition to become a global Web3 and virtual asset hub, offering institutional and retail investors seamless exposure to bitcoin within a regulated framework.

Backed by strong regulatory clarity and infrastructure readiness, Hong Kong’s approach diverges from other jurisdictions—most notably the U.S.—by allowing both cash and in-kind creation and redemption mechanisms. This flexibility could prove to be a game-changer in terms of market efficiency, liquidity, and investor accessibility.

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Why Hong Kong’s Bitcoin Spot ETF Framework Stands Out

Unlike the U.S. Securities and Exchange Commission (SEC), which only permits cash-based creation and redemption for its bitcoin spot ETFs, Hong Kong regulators have adopted a more flexible model. The SFC allows both cash (in-cash) and physical (in-kind) methods for ETF share issuance and redemption.

This dual mechanism enhances price discovery, reduces tracking errors, and supports greater market liquidity—especially important for institutional players seeking efficient large-scale exposure.

According to SoSoValue data as of April 11, 2025, U.S.-listed bitcoin spot ETFs have amassed $58.64 billion in net assets**, with a historical net inflow exceeding **$12.49 billion. These figures underscore the massive demand from traditional finance ("old money") for regulated crypto access—a trend Hong Kong aims to capture.

Regulatory certainty is key. By establishing clear licensing requirements and operational standards—including mandatory 9th-category licenses for full virtual asset portfolio management—the SFC has created a trustworthy environment that encourages innovation while protecting investors.

The Four Leading Contenders in Hong Kong’s ETF Race

As of April 10, 2025, reports suggest the SFC plans to approve four major players in the first wave of bitcoin spot ETF launches: Harvest Fund International, China Asset Management (Hong Kong), Bosera Asset Management, and Value Partners Group, in collaboration with VSFG (Ebos Group).

Harvest Fund International: First-Mover Advantage

Harvest Fund International made history on January 26, 2025, by becoming the first firm to file for a Hong Kong bitcoin spot ETF. A wholly-owned subsidiary of Beijing-based Harvest Fund Management, it manages over $200 billion in assets and employs more than 300 investment professionals.

The company already holds an upgraded Type 9 license from the SFC, enabling it to manage portfolios fully invested in virtual assets. It also pioneered Hong Kong’s first tokenized fund in December 2023—an ESG-focused product backed by high-grade U.S. Treasuries—demonstrating its commitment to blending traditional finance with blockchain innovation.

With robust capital backing and proven experience in digital asset structuring, Harvest is well-positioned to lead the market launch.

China Asset Management: Expanding Its Web3 Footprint

Founded in 1998, China Asset Management is one of China’s oldest and largest fund managers, overseeing approximately $250 billion in assets as of late 2024. Its Hong Kong arm has been actively expanding into Web3 through strategic partnerships.

In November 2024, it signed a memorandum with HashKey Exchange and asset tokenization platform Hamsa, signaling its intent to innovate in digital asset products. The firm also secured SFC approval to manage 100% virtual asset portfolios under its Type 9 license.

While it has not officially confirmed its ETF application, its regulatory readiness and ecosystem collaborations strongly indicate inclusion in the first approval batch.

Value Partners & VSFG: A Strategic Alliance

On January 29, 2025, VSFG (Ebos Financial Group) became the first financial institution to publicly announce plans for a Hong Kong bitcoin spot ETF. By March 27, it formally submitted the application in partnership with Value Partners, one of Asia’s largest independent asset managers.

VSFG’s subsidiaries—Ebos Capital Asia and Ebos Asset Management—are licensed for Types 1 (securities trading), 4 (advisory), and 9 (asset management) activities. Notably, Ebos Capital Asia launched Hong Kong’s first regulated virtual asset fund in April 2020 via its blockchain arm Arrano Capital.

Value Partners brings decades of investment expertise, particularly in Asian equities. Its flagship Value Fund boasts a 30-year track record focused on Greater China markets.

Together, they aim to reach $500 million in AUM by year-end. CEO Margaret Wong stated: “This ETF initiative marks our first major collaboration, giving Hong Kong investors convenient access to the world’s leading digital asset.”

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Bosera Joins Forces with HashKey

Bosera Asset Management, established in 1998 and managing over $200 billion in assets, entered the race through a strategic alliance with HashKey Capital on April 6, 2025. While Bosera International hasn’t yet obtained its own virtual asset license, its partnership with HashKey—a fully licensed player—accelerates its path to market.

Their cooperation spans multiple domains:

This collaboration highlights a growing trend: traditional asset managers teaming up with native Web3 firms to navigate regulatory complexities and technological demands.

Victory Securities: The Brokerage Powerhouse

While not an ETF issuer itself, Victory Securities has emerged as a critical enabler in Hong Kong’s crypto ecosystem. It holds all three essential licenses:

Its proprietary trading platform, VictoryX, supports multi-market access—covering港股,美股, and digital assets—all within a single interface. Crucially, it’s the first SFC-approved broker allowing crypto-in, crypto-out transactions.

For ETFs using in-kind creation/redemption, Victory Securities’ infrastructure allows seamless transfer of bitcoin between investor wallets and fund custodians—making it a preferred partner for many issuers.

CEO Chen Peiquan emphasized: “We’ve invested millions to build a unique stock-and-crypto trading app… We’re committed to becoming the most influential virtual asset broker in Asia.”

HashKey: The Backbone of Hong Kong’s Crypto Infrastructure

No discussion of Hong Kong’s ETF landscape is complete without mentioning HashKey—a dominant force across exchange, custody, and asset management.

As reported by The Block on April 12, 2025, HashKey Exchange CEO Owen Wong confirmed that partner fund issuers have finalized their bitcoin spot ETF development plans. HashKey is now in the “integration and functional testing” phase, providing core infrastructure including:

With over HK$2.2 billion ($280 million) in assets under custody and more than a year of stable operations, HashKey has become the go-to custodian for multiple ETF applicants.

Additionally:

On April 11, HashKey Capital received SFC approval to lift qualified investor restrictions on its Type 9 license—enabling future retail offerings (subject to final product approval). This upgrade strengthens its role as both infrastructure provider and potential future issuer.

Frequently Asked Questions (FAQ)

Q: When will Hong Kong’s bitcoin spot ETFs launch?
A: The SFC is expected to announce the first batch of approved issuers around April 15, 2025, with listings potentially occurring within 10 days—possibly by late April.

Q: What makes Hong Kong’s bitcoin ETF different from U.S. versions?
A: Hong Kong allows both cash and in-kind creation/redemption, enhancing liquidity and reducing reliance on intermediaries—a structural advantage over U.S. cash-only models.

Q: Can retail investors buy these ETFs?
A: Yes. Unlike earlier restrictions, recent license upgrades (e.g., HashKey Capital) indicate that retail access will be permitted under appropriate safeguards.

Q: Which companies are likely in the first approval wave?
A: Harvest Fund International, China Asset Management (Hong Kong), Bosera (via HashKey), and Value Partners/VSFG are the leading candidates.

Q: Is bitcoin safe in these ETFs?
A: Yes. All assets must be held by licensed custodians like HashKey or traditional financial institutions under strict SFC oversight.

Q: How does this affect Hong Kong’s financial status?
A: It reinforces Hong Kong’s position as Asia’s premier Web3 gateway, bridging traditional finance with digital innovation under clear regulation.

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Final Thoughts: A New Era Begins

The arrival of bitcoin spot ETFs in Hong Kong isn’t just about launching new funds—it signals the convergence of traditional finance and Web3. With strong regulatory foundations, advanced infrastructure, and active participation from top-tier financial institutions, the city is positioning itself at the forefront of the next financial revolution.

Time is now the critical factor. Firms that prepared early—like Harvest, HashKey, and Victory Securities—are set to reap first-mover benefits. For investors, this means safer, more accessible routes to gain exposure to digital assets without sacrificing compliance or security.

As global interest grows and “old money” begins flowing into crypto through regulated channels, Hong Kong may soon emerge as the leading bridge between Wall Street and Web3.

Core Keywords:
Bitcoin Spot ETF, Hong Kong ETF, Virtual Asset Regulation, Web3 Finance, Institutional Crypto Investment, SFC Licensing, ETF Creation Redemption