The Hong Kong financial market has taken a bold step into the future of digital assets with the approval of spot cryptocurrency ETFs. On April 23, 2025, the Securities and Futures Commission (SFC) greenlit three major asset managers—China Asset Management (Hong Kong), Harvest Fund Management, and Bosera Asset Management—to launch spot Bitcoin and Ethereum ETFs. These products mark a pivotal moment for Asia’s financial landscape, offering regulated, accessible, and secure exposure to leading cryptocurrencies.
This guide breaks down the key features, differences, and strategic advantages of each ETF provider. Whether you're a seasoned investor or new to digital assets, understanding these offerings is essential for navigating this emerging investment frontier.
What Are Bitcoin and Ethereum Spot ETFs?
A spot cryptocurrency ETF is an exchange-traded fund that directly holds physical Bitcoin or Ethereum, aiming to mirror the real-time price movements of these digital assets. Unlike futures-based ETFs, which track derivatives contracts, spot ETFs provide direct exposure to the underlying asset—making them a more accurate reflection of market value.
👉 Discover how spot crypto ETFs are reshaping investment strategies in 2025.
These ETFs trade like stocks on major exchanges, offering liquidity, transparency, and regulatory oversight. Investors gain exposure without managing private keys or navigating crypto wallets—ideal for those prioritizing security and simplicity.
Launch Date and Initial Pricing
All three ETFs were listed on April 30, 2025, creating a synchronized entry into Hong Kong’s capital markets.
- China Asset Management (Hong Kong) and Harvest Fund Management both set their initial share price at $1.00 USD.
- Bosera Asset Management, however, adopted a dynamic pricing model based on the CME CF Bitcoin Reference Rate as of 4:00 PM HKT on April 26, 2025. Its initial price was calculated as 0.0001 times the index value, aligning closely with real-time market conditions.
This subtle difference reflects Bosera’s strategy to minimize tracking error from day one.
Trading and Subscription Requirements
Understanding lot sizes and minimum subscription thresholds is crucial for investors planning entry.
| Feature | China Asset Mgmt | Harvest Fund | Bosera Asset Mgmt |
|---|---|---|---|
| Minimum Trade Size (per lot) | 100 shares | 100 shares | 10 shares |
| Minimum Creation Unit | 10,000 shares | 50,000 shares | 10,000 shares |
Bosera stands out with a significantly lower trading barrier—just 10 shares per lot—making it more accessible to retail investors. However, Harvest Fund requires the highest creation unit (50,000 shares), targeting institutional players over casual traders.
Creation and Redemption Mechanism
All three funds support in-kind and cash creation/redemption, allowing authorized participants to exchange baskets of crypto or fiat for ETF shares (and vice versa). This dual mechanism enhances liquidity and helps keep the ETF’s market price aligned with its net asset value (NAV).
This flexibility also enables arbitrage opportunities that stabilize premiums or discounts—critical for long-term investor confidence.
Supported Currencies and Management Fees
Trading Currencies
- China Asset Management: USD, HKD, CNY
- Harvest Fund & Bosera: USD, HKD
China Asset leads in currency diversity by including Chinese yuan (CNY), potentially attracting mainland-influenced investors despite current sales restrictions.
Annual Management Fees
- China Asset Management: 0.99% (flat rate)
- Harvest Fund: 0% for first 6 months, then 0.3%
- Bosera: 0% for first 4 months, then 0.6%
Harvest offers the most aggressive fee structure—effectively free for half a year—with a competitive post-promotion rate. Bosera follows closely, while China Asset charges a higher but transparent flat fee.
👉 See how low fees can compound into major gains over time.
Benchmark Index and Custody Structure
Tracking Benchmark
All three ETFs track the CME CF Bitcoin Reference Rate, a globally recognized benchmark that calculates the volume-weighted average price of Bitcoin across major exchanges during a specific window each day.
This ensures high accuracy in replicating spot prices and minimizes manipulation risk.
Primary Custodian
- Bank of China International (BOCI) – Prime Trustee Limited serves as the primary custodian for all three funds, responsible for safeguarding assets and overseeing compliance.
Sub-Custodians
- China Asset & Harvest Fund: OSL Digital Securities Ltd.
- Bosera: Hash Blockchain Limited
The choice of sub-custodian reveals strategic differences:
- OSL is a licensed virtual asset trading platform under SFC regulation—offering integrated custody and trading infrastructure.
- Hash Blockchain specializes in institutional-grade crypto custody with strong ties to Asia’s blockchain ecosystem.
These choices reflect varying risk appetites and operational philosophies among the issuers.
Trading Platforms, Market Makers & Authorized Participants
Trading Platforms
- China Asset & Harvest Fund: OSL Exchange
- Bosera: HashKey Exchange
Both OSL and HashKey are SFC-licensed platforms, ensuring regulatory alignment and security.
Market Makers
Market makers ensure liquidity by continuously quoting buy/sell prices:
- China Asset: Vivienne Court Trading
- Harvest Fund: CMBI Securities, CLSA, and Virtu Financial Singapore
- Bosera: Not yet disclosed
Harvest’s multi-firm approach brings deep liquidity pools from global financial heavyweights.
Authorized Participants (APs)
APs are key players in ETF creation and redemption. Key APs include:
- Victory Securities
- Mirae Asset Securities (HK)
- Eddid Capital Securities
- Futu HSIG (Hua Sheng Capital)
- China Merchants Securities (HK) (also added by Harvest)
These institutions act as intermediaries between investors and issuers, ensuring smooth operations and price stability.
Audit Transparency: Independent Oversight
To ensure financial integrity, each fund has appointed a top-tier auditor:
- China Asset & Harvest Fund: PricewaterhouseCoopers (PwC)
- Bosera: Ernst & Young (EY)
These independent audits verify fund holdings, financial statements, and compliance—providing essential trust signals for investors concerned about transparency in digital asset products.
Asset Manager Profiles: Scale and Experience
Understanding the issuer's track record adds confidence to investment decisions.
China Asset Management (Hong Kong)
- Mainland AUM: $55.7 billion
- Hong Kong AUM: $3.6 billion
- ETFs Issued (Mainland): 84
- ETFs Issued (Hong Kong): 15
One of China’s largest fund houses, with extensive experience in passive investing.
Harvest Fund Management
- Mainland AUM: $10.3 billion
- Hong Kong AUM: $16 million
- ETFs Issued (Mainland): 42
- Hong Kong AUM: 4 ETFs
Smaller in scale but aggressive in innovation—particularly evident in its fee strategy.
Bosera Asset Management
- Mainland AUM: $10.7 billion
- Hong Kong AUM: $40 million
- ETFs Issued (Mainland): 43
- Hong Kong AUM: 6 ETFs
Slightly larger than Harvest in mainland assets and shows growing commitment to Hong Kong’s financial innovation.
Frequently Asked Questions (FAQ)
Q: Can mainland Chinese investors buy these crypto ETFs?
A: No. Under SFC and HKMA guidelines from December 2023, these products cannot be marketed to retail investors in mainland China due to regulatory restrictions on virtual asset sales.
Q: Do I need to be a Hong Kong permanent resident to invest?
A: Not necessarily. Mainland residents holding a Hong Kong ID may participate if they comply with local regulations and open accounts through approved brokers.
Q: How do spot crypto ETFs differ from futures-based ones?
A: Spot ETFs hold actual Bitcoin or Ethereum, offering direct price exposure. Futures ETFs rely on derivative contracts, which can deviate from spot prices over time due to roll costs and contango.
Q: Is physical redemption possible?
A: Yes—authorized participants can redeem shares for actual crypto through in-kind settlements. Retail investors benefit indirectly via tighter price tracking.
Q: Why does the choice of sub-custodian matter?
A: Sub-custodians handle asset storage in specific jurisdictions. Licensed platforms like OSL offer enhanced security and regulatory compliance, reducing counterparty risk.
Q: Which ETF is best for retail investors?
A: Bosera’s 10-share lot size lowers entry barriers, while Harvest’s low fees enhance long-term returns. China Asset offers multi-currency access—ideal for diversified portfolios.
Final Thoughts: A New Era for Digital Investing in Asia
Hong Kong’s launch of spot Bitcoin and Ethereum ETFs signals its ambition to become Asia’s premier digital asset hub. With robust regulation, institutional-grade custody, and competitive product design, these offerings bridge traditional finance with the future of money.
For investors, the decision comes down to priorities: accessibility (Bosera), cost efficiency (Harvest), or multi-currency flexibility (China Asset).
👉 Start exploring regulated crypto investment options today.