Hong Kong joins global crypto ETF race

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Hong Kong joins global crypto ETF race
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Rollout of spot bitcoin and ether exchange traded funds follows launch of similar products in US by BlackRock and Fidelity

Hong Kong’s first spot cryptocurrency exchange traded funds started trading on Tuesday, as the Asian financial hub takes on the US in the race to dominate the growing market. The rollout follows the launch of similar products in the US by groups including BlackRock and Fidelity Investments in January, which have drawn billions of dollars of investment and helped push the price of bitcoin to a record high of more than $73,000 in March.

In January, the US Securities and Exchange Commission approved the country’s first spot bitcoin ETFs. BlackRock’s iShares Bitcoin Trust has more than $17bn in assets under management, according to Bloomberg data, buoyed by billions of dollars in net inflows and sharp gains in digital asset prices this year. The 11 US-based spot bitcoin ETFs have drawn about $12bn in total net inflows since their launch, according to London-based Farside Investors.

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